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Joined on 10/23/2007 Posts: 2
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CFO Brian Gladden Discusses Dell Q4 Fiscal Year 2009 Performance

26 February , 02:04 PM

Dell announced fourth-quarter fiscal-year 2009 financial results on Feb. 26. Brian Gladden, Senior Vice President and CFO, discusses the results and the company's outlook. Please review earnings materials on Dell Investor Relations Q4 events page.  All comparisons are year-over-year unless otherwise noted.

 

We announced Q4 results today.  Revenue was down 16% to $13.4 billion.  EPS was $0.18 per share and cash from operations was $729 million.  For the full year fiscal 2009, revenue was $61.1B and EPS was $1.25. Cash flow from operations was $1.9B, and we completed the year with $9.5B in cash and investments.

     

Each quarter we evolve the format here on Dell Shares to provide you with a little more insight into what is going on in our business.   This quarter, instead of writing our traditional earnings blog, I am pleased to have Brian Gladden join us on Dell Shares to provide his view on the fourth quarter, the economy, industry demand and the company's outlook. 

    

    

 Also, we strongly encourage investors to read the full press release and earnings presentation; and listen to a replay of our conference call that can be found on the investor relations web site after the earnings call.   As always, we encourage you to ask questions or leave comments on Dell Shares.

 

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Dell IR
03 Mar 2009 01:15 PM

Thanks JD.

We evaluate our businesses, including the Global Consumer basis on a rolling four quarter basis.  Due to timing of certain income streams, seasonality, etc there will be variability.  For FY'09 the Consumer segment earned 1.2% of operating income, which is in-line with our short term view.  Going forward we will continue to increase the number of products that are cost optimized over the next 12-18 months.

    

Providing cutting edge technology, features that customers value and content around the system are part of our consumer strategy which falls into providing disruptively great value.  Though it isn't mentioned here, we have been improving our offerings in the consumer space for some time now with new designs, wider product portfolio and new tools and technology such as Dell DataSafe and Dell on Call which are aimed at simplifying the experience for customers.  All of the items in our operating agenda on the right of that slide apply to Consumer just as much as they apply to our commercial business.
 
Jdhowards
27 Feb 2009 11:48 AM

I listened to the webcast and read the earnings presentation.  A couple of things jumped out at me which I would love to see your opinions on. 

First, what happened to Global Consumer's opinc in Q4?  It had 22% of the Dell revenue with 0% of opinc for Q4.  If it expects to operate in the 1-2% range in the near term, wouldn't additional product streamlining be appropriate?

Secondly, why does the strategy slide seem to leave the Global Consumer segment out?  Slide 21 (Our Stategy and Operating Agenda) is interesting because the slide seems to be focused primarily on SMB and larger relationship customers.  The two strategies seem to be aimed at gaining a slice of the IT pie.  Consumers generally don't have and IT dept so it's a bit of a stretch to say it's inclusive of a Global Consumer strategy.  Tenet 1: "Provide disruptively great value to customers and partners through a direct releationship by simplifying IT and making it productive."  Tenet 2: "Move the weight of our solutions portfolio to higher margin offerings and recurring revenue streams in Servers, Storage, Services and Software that deliver on Tenet 1."