Dell shifts strategy to make servers its No. 1 priority

Article Abstract:

PC maker Dell Computer plans to counter falling personal computer prices by focussing on the higher margin Internet server business. 1999 sales were $25 bil, a 38% increase over 1998. For 2000, the company is forecasting a rise in revenues between 30% and 35%. The effort signals a change in course for Dell, which previously had said consumer services and international sales would drive the business's growth. Dell is targeting emerging Internet markets for its servers. It hopes in this way to avoid confronting established server sellers like IBM, Compaq, HP, and Sun in the sector at large.

Marketing procedures, Statistical Data Included, Marketing, Company marketing practices

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Dell profit jumps 55%, beats estimates; third-quarter results gain from higher-end PCs, strong sales in Europe

Article Abstract:

Dell Computer reported a 55% increase in its 3rd qtr 1998 profit of $384 million, or 28 cents a diluted share. The PC manufacturer slightly outperformed a First Call survey of analysts, which projected a per-share gain of 27 cents. By comparison Dell reported earnings of $248 million, or 17 cents a share adjusted for a stock split, in the 3rd qtr 1997. European sales leaped 68% to surpass expectations and allay recent investor concerns about Dell's performance in this lucrative PC market segment. Continued demand for notebook PCs and servers helped Dell list a 51% revenue gain, from $3.19 billion in the 3rd qtr 1997 to $4.82 billion in the 3rd qtr 1998. Revenue growth, while meeting Wall Street projections, represents the lowest improvement since the 2nd qtr 1997. Analysts say the numbers suggest that a tightening market may prevent Dell from continuing to top the most optimistic projections.

Company sales/revenue, Company sales and earnings, Company earnings/profit

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Dell's results spur bitter early reaction; earnings meet estimates, but sales send stock plunging after hours

Article Abstract:

Earnings at Dell Computer Corp. in its fiscal fourth quarter met analysts expectations but its 38% increase in revenue didn't meet the average growth rate of previous quarters, 56%. The company's Internet sales reportedly have reached $14 million a day, a fact that has allowed the firm to hire only 1,100 new workers instead of the usual 2,400 people hired per quarter.

Comment:

Fourth quarter figures disappoint investors

Computers, Digital computers, Abstract

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