Dell Forth Quater 2007 Results

Dell Forth Quater 2007 Results

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(Best Syndication) Dell reported that they will not be paying out full employee bonuses “due to a failure to achieve its operating targets for fiscal 2007”. Their preliminary results for the fourth quarter of fiscal year 2007 were an operating income of $801 million on revenue of $14.4 billion. They ended the quarter with $12.5 billion in cash and investments, according to the company.

This equates to 30 cents per share. CNN Money reports that the No. 2 PC maker's sales figures came in below estimates, and Dell warned that growth and profit margins will remain "under pressure" for the next few quarters.

The company CEO and founder, Michael Dell, said “We are disappointed with the company’s results, but what matters is our future plan of action. We are systematically moving to increase efficiencies, improve execution and transform the company.” But there is hope for the future according to Dell. “Our business model will become more aligned with the needs of our customers, which will improve their experience and yield improved growth and profitability for the long-term.”

Bloomberg says that Dell posted fourth-quarter profit and sales that trailed analysts' reduced estimates after the company lost customers to rivals over the holidays. They say the results underscore the reason for Dell’s return as chief executive officer in January.

Their biggest competitor, Hewlett-Packard Co. cut prices during the holiday season. Dell cut back on holiday promotions allowing HP to lure buyers with lower cost notebook computers. This likely contributed to a slump in sales that was 33 percent lower than last year.

By Steven Potter
Best Syndication Business Writer

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