Dell Inc. recently said that it is squarely focused on enhancing the level of profitability and diversifying its business even though its investors are expressing concerns over efficacy of turnaround plans of the company.
Shares of the company fell 6.4 percent outpacing a decline of 1.6 percent in the S&P computer hardware index as Dell laid out its strategy during its annual analyst day meeting.
From in.biz.yahoo.com:
The company said it is well-positioned to reap the benefits of a strong refresh cycle among commercial customers as they replace aging personal computers and servers.
At the same time, Dell is still grappling with rising component costs and volatility in international markets, and its margins have been an area of concern for Wall Street.
Collins Stewart analyst Lou Miscioscia said investors are not sensing that Dell is making progress.
“What they’re hearing is not much different than what they heard two years ago,” he said. “It’s the same set of challenges.”
Dell executives said the company is aiming to increase operating income with better execution and supply chain management, and cost efficiencies, even as it strives to become less reliant on its low-margin PC business by greatly expanding its services, server and storage segments.
The company said its hopes to grow both its $16 billion enterprise solutions business and its PC segment faster than the overall market.
“We’re on a growth strategy,” Chief Executive Michael Dell said during the analyst meeting. “Last year was a challenging one for the global economy … but this year we see the growth really coming back.”
It was remarked by Chief Financial Officer Brian Gladden that there are signs of weakened demand from European consumers while average selling prices are improving. It was also remarked that foreign currency volatility and component pricing continue to be challenges.


July 29th, 2010
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It’s about time smoeone wrote about this.
Keep on wrtiing and chugging away!