Dell`s Losses Reflect Its Growing PainsBy Scott Ferguson | Posted 2008-02-29 Email Print
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The latest quarterly loss from Dell reflects its need to grow, while trimming costs to keep up with Hewlett-Packard and other rivals.
There are more tough decisions ahead for Michael Dell and his company.
After reporting disappointing fiscal fourth-quarter results Feb. 28, the PC vendor is likely to face a number of challenges as he tries to bring the company back to the profitability that so many on Wall Street have come to expect.
During its fiscal fourth quarter, which ended Feb. 1, Dell’s net income was $679 million, or 33 cents per share, which is a 6.5 percent drop from the $726 million in net income the company posted a year ago. For the quarter, Dell's revenue increased from $14.5 billion last year to $16 billion this year.
Dell is also trying to make a comeback at a time when the U.S. economy is showing continued signs of a slowdown. The U.S. market remains extremely important to Dell even though it reported Feb. 28 that 49 percent of its revenue in the fourth quarter came from overseas, where sales increased 16 percent.