Dell Generates Strong Cash Flow in Fiscal Q1, 2010

by CXOtoday Staff    May 29, 2009

Dell announced solid cash flow in a challenging demand environment during its fiscal first quarter 2010, as the company continued to develop capabilities even more deeply into datacenter computing, services and software.

"We’re continuing to transform the company on the cost side and delivering strong cash flow," said Michael Dell, chairman and chief executive officer. "Re-establishing cost leadership and having flexibility to invest in our business will position us well as IT spending improves."

He further said, "Signals about the demand environment are mixed, but we’re preparing for what we believe will be a powerful replacement cycle, with virtualization and managed services playing larger roles in what customers want and Dell provides."

Dell said the company further broadened its enterprise computing and services capabilities in Q1, including introduction of Dell’s 11th-generation servers and significant growth in sales of its EqualLogic scalable, virtualized storage solution. A series of acquisitions has been integrated into cloud-based services for monitoring and managing IT networks for larger customers, which are now being extended to small and medium businesses, first in the US.

Brian Gladden, Dell’s chief financial officer, said fiscal first-quarter results are consistent with how the company is managing its business in the present IT spending environment.

"Along with generating strong cash flow, we maintained solid operating margins and made further progress toward reducing annualized costs by $4 billion by the end of fiscal 2011," said Gladden.

The company increased its portfolio of tailored resources in the SMB solutions center, providing SMB customers with new interactive content, industry research, peer communities and enhanced search capabilities.

Shipments increased 12% over last year, as product launches in the quarter included the Adamo by Dell brand. Dell also announced the Studio One 19, a new all-in-one computer, and the Studio XPS 435, for digital-content creation and tech enthusiasts. While further improving the online buying experience at Dell.com, the company expanded customer reach to now more than 30,000 consumer retail outlets worldwide.

 

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