Falling revenue offset by reduced spending

Dell sees profits drop

Dell has seen its fourth quarterly profits drop to $351 million from $679 million for the same period last year.

The 48 per cent decline has been attributed to a 16 per cent decline in sales and reduced margins.

Dell has managed to reduce its operating expenditure by 16 per cent as part of its cost reduction program, which aimed to save the company $3 billion by 2011.

In response to these declining figures, Dell may be looking to reduce costs by an additional billion.

“We’ll be the first to admit that this is a work in process and that there’s more to do,” said Dell’s chief financial officer, Brian Gladden. “We will continue to rapidly adjust our costs in response to demand.”

Source: Financial Times

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