Dell Profit Down 33%
By Doug Olenick -- TWICE, 3/2/2007
Round Rock, Texas — Dell’s revenue and net income slipped during its fourth quarter, ended Feb. 2, with the computer maker generating $673 million in profit on $14.4 billion in sales.
During the same period last year, Dell showed a net income slightly above $1 billion on sales of $15.2 billion. The company noted several items that affected its bottom line during the quarter, including costs associated with several ongoing investigations regarding possible financial reporting irregularities, a savings created by holding back bonuses because the company did not hit its financial marks and a one-time gain due to the sale of real estate.
“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,” said Michael Dell, company CEO and chairman. “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.”
Dell took over the CEO slot from Kevin Rollins last month in an attempt to turn around the company he founded in 1984.
Desktop PCs continue to be Dell’s dominant product category for the quarter, accounting for $4.6 billion, or 32 percent, of revenue, with mobility products second at $3.8 billion, or 26 percent. During the same period last year desktops accounted for 37 percent and mobility 25 percent of revenue.
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