EDITING: Dell Optimistic Despite 48 Percent Income Drop
With its fourth-quarter revenue down, Dell is taking action, pledging an additional $1 billion in cost cuts over the next two years. Dell's sales fell along with industry-wide PC declines. But Dell sees Windows 7 and netbooks as potential growth opportunities in a challenging IT market. Dell was late to the netbook market and now rates No. 6 globally.
Dell said its revenue declined 16 percent year-over-year to $13.4 billion in its last business quarter, which ended Jan. 30. The company also reported its quarterly net income fell 48 percent to $351 million when factoring in previously announced pretax expenses of $277 million. To counter what is proving an increasingly "uncertain and challenging IT market," Dell executives told investors on Thursday that the company will implement an additional $1 billion in cost cuts within the next 24 months.
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