- Apr 25, 2006
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Got this from the WSJ. Hope none of our buddies are affected:
Dell Inc. said it plans a 10% reduction in its work force over the next year as the struggling computer giant tries to cut costs. The company also posted slightly higher revenue from a year earlier as an increase in average selling prices and a decline in component costs helped offset stiff competition.
Shares surged after hours, up 7% to $28.78 in late trading. The stock closed at $26.91, up 67 cents on the Nasdaq Stock Market Thursday.
In preliminary results, Dell, Round Rock, Texas, said net income was $759 million, or 34 cents a share, for its fiscal first quarter ended April 30. That compares with a profit of $762 million, or 33 cents a share, in the same period last year.
Revenue was $14.6 billion, up from $14.22 billion in the year-earlier period.
In the quarter, the company incurred approximately $46 million, or two cents a share, in costs associated with the ongoing investigations into certain accounting and financial reporting matters.
Dell plans on cutting 10% of its work force, or about 8,800 jobs, over the next year in an effort to cut costs. Dell didn't say how much money it intends to save with the job cuts.
Dell's sales and profits have slowed since 2005 as more people started to buy computers in retail stores. Last year, the company lost the No. 1 spot in the PC industry to Hewlett-Packard Co., which sells PCs through 110,000 retail outlets world-wide.
Last week, Dell announced it will sell its personal computers through Wal-Mart Stores Inc., breaking from the direct-sales model. The move was the first big undertaking by Dell founder and Chief Executive Michael Dell since he resumed his CEO post earlier this year. Mr. Dell said at the time that the move was part of a broad global push into retail and that more retail announcements are coming.
Dell Inc. said it plans a 10% reduction in its work force over the next year as the struggling computer giant tries to cut costs. The company also posted slightly higher revenue from a year earlier as an increase in average selling prices and a decline in component costs helped offset stiff competition.
Shares surged after hours, up 7% to $28.78 in late trading. The stock closed at $26.91, up 67 cents on the Nasdaq Stock Market Thursday.
In preliminary results, Dell, Round Rock, Texas, said net income was $759 million, or 34 cents a share, for its fiscal first quarter ended April 30. That compares with a profit of $762 million, or 33 cents a share, in the same period last year.
Revenue was $14.6 billion, up from $14.22 billion in the year-earlier period.
In the quarter, the company incurred approximately $46 million, or two cents a share, in costs associated with the ongoing investigations into certain accounting and financial reporting matters.
Dell plans on cutting 10% of its work force, or about 8,800 jobs, over the next year in an effort to cut costs. Dell didn't say how much money it intends to save with the job cuts.
Dell's sales and profits have slowed since 2005 as more people started to buy computers in retail stores. Last year, the company lost the No. 1 spot in the PC industry to Hewlett-Packard Co., which sells PCs through 110,000 retail outlets world-wide.
Last week, Dell announced it will sell its personal computers through Wal-Mart Stores Inc., breaking from the direct-sales model. The move was the first big undertaking by Dell founder and Chief Executive Michael Dell since he resumed his CEO post earlier this year. Mr. Dell said at the time that the move was part of a broad global push into retail and that more retail announcements are coming.
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