I am pleased to have Brian Gladden, Senior Vice President and CFO, and Steve Schuckenbrock, President of Dell Services, join us on DellShares to provide their view on the fourth quarter, highlight progress made in executing on our overall strategy, and outlook for fiscal year 2012.
Dell announced its fourth-quarter fiscal-year 2011 financial results on February 15th. We reported overall a strong quarter with revenue of $15.7 billion, up 5% year over year and Non-GAAP operating income up 61% year over year, which was 8.2% of revenue. Non-GAAP EPS was $0.53 per share, up 89% year over year. In addition, cash flow from operations was a solid $1.5 billion and $4.0 billion for the full year, which is the best fiscal year for cash flow in five years.
I strongly encourage you to read the full press release and earnings presentation; and listen to our conference call that can be found on the investor relations web site.
We have attached a transcript for those of you unable to watch the video or just have a preference to read it.
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Next week, Dell will release our fourth quarter and full year FY11 results after the market close on
Dell’s solutions strategy have increased recently. It started at the Sanford Bernstein Strategic Decisions
Conference , Michael Dell discussed Dell's shift away from PCs . Those discussions
continued last week with Dell activities at the Cloud Expo in
New York and the Dell Storage Forum .
strategy is about combining our hardware
heritage along with enterprise technology we have been building over the last
few years via acquisitions. Feedback from media and analysts who joined us at the Dell storage forum
illustrates that point. In his Network Computing article , here’s what Steve Wexler had to say:
“These types of scalable solutions will be the
norm over time in the enterprise, and here we have Dell as one of the vendors
leading the way. Did we ever think we’d say that about Dell storage?”
evidence the strategy is working, starting with our Q4 and year-end results for FY11 . That momentum continued into our Q1 results for FY12 which happened last month. Among the
highlights in Q1: revenue from Enterprise Solutions and Services grew 5% year
over ear to $4.4 billion. We launched vStart, which allows us to deliver
fully pre-configured virtual machines. Dell-owned intellectual property (IP) from storage technology including Compellent , EqualLogic , PowerVault and DX Object Storage grew revenue 11% year over year. Moving
forward, we’ll continue efforts to drive even more revenue through Dell-owned
We’re also making
investments to enhance our technology solutions capability. In April, we
announced a $1B FY12 investment in technology solutions and services. These investments will result
in building out next-generation cloud data centers, and the expansion of Dell
Global Solution Centers to help customers architect, validate and build
solutions that power their businesses. Earlier this week, we opened our first Solution Center in Limerick, Ireland.
investing heavily to train and rewire our sales force to deliver
customer-centric solutions, that expand across our product sect, to help our
customers increase IT efficiency. For instance, our Intelligent Data Management solutions help customers increase the value of stored
content by providing them with efficient, intelligent and automated storage,
data and decision management.
What do these kinds of
changes mean to Dell moving forward?
In comparison to our
past, today’s Dell has evolved from a PC manufacturer to a true IT solutions
partner – one that offers a differentiated view of the enterprise. Much of
Dell’s growth today is being driven from the commercial side of Dell’s business
where about 80% of Dell’s revenue comes from.
Compared to the
competition Dell’s strategy is all about providing open, capable and
affordable solutions and services to global business customers of all
We’re committed to
building out our solutions strategy, with many of the pieces already in place. We’ll
continue our efforts to build more capabilities around services, technology and
storage to meet the needs of our customers. For long term success, I think a
lot of people here understand that strategy is key—and so is execution.