Down 48 per cent year-on-year.
A bit later than many IT companies, Dell has finally announced its Q4’08 financial results and they’re not exactly great. Quarterly revenue was $13.4 billion, down 16 per cent year-on-year although annual revenue managed to increase $32 million – essentially a negligible change. Not that bad, all things considered, but not exactly outstanding either.
Net income for Dell’s final quarter last financial year was $351 million, down a massive 48 per cent from $679 million the previous year. Yearly net income suffered a less notable drop of 16 percent, from $2.95 to $2.48 billion.
Dell can at least sit comfortably knowing it is one of the few companies that managed to turn a profit in its last quarter and financial year. The company isn’t sitting idle, either. Plans to reduce operating costs by £3 billion annually before 2011 have now been extended to see that saving reach $4 billion.
As Dell chairman and CEO Michael Dell commented: “Customers know they need information technology, and we think we’re best able to help them use IT to improve productivity, but a lot of IT spending is being deferred until there’s better economic visibility.” The key, as Michael Dell puts it is to invest “in ways that separate Dell from others today and when the economy inevitably improves.”
Or, to paraphrase, we all know the economy is shot and no-one is spending any money so Dell is going to have to wait it out like every other company.