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Dell achieves global share of 19,3% in Q2

Date: 21 August 2006	Issue: Two hundred (21/8/06 - 25/8/06) (ICT World)
Category: Global News

Dell reported revenue of $14,1bn for the second quarter of fiscal year 2007, an increase of 5% year-over-year. Operating income was $605m, or 4,3% of revenue, which includes $119m of stock-based compensation. The company priced aggressively in a slower market, resulting in operating income which was lower than its May expectations on similar revenue. As a result, EPS for the quarter finished at 22 cents.

"While we are disappointed with the results for the quarter, we are taking the necessary actions to correct mis-steps and improve our results for the long term," says Kevin Rollins, Dell CEO. "Key actions include accelerating cost initiatives, increasing investments in service and support, and better pricing management."

Dell achieved a global share of 19,3% with units up by 6% for the quarter. International sales, up by 11% for the quarter, were led by the Asia-Pacific and Japan region, where Dell moved to the No.2 position. The emerging markets of China, Brazil and India were led by strong unit growth of 37, 77 and 82%, respectively. In both China and Brazil, Dell expects to be No. 1 in servers with nearly 26% and 41% share, respectively.

Cash flow from operations was almost $700m, and Dell ended the quarter with $10.8bn in cash and investments. Dell spent $1bn in the quarter to repurchase 43m shares of common stock.

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