Hi Kemble & All: Here's an article that sums up Dell's new FY...sure sounds like Dell has set new expectations and goals for the company.
Thursday February 10, 7:31 pm Eastern Time
Dell reiterates lower guidance, sees Q1 EPS flat
NEW YORK, Feb 10 (Reuters) - Dell Computer Corp.(NasdaqNM:DELL - news) on Thursday reiterated that it expected revenues in the foreseeable future to grow a much slower rate than in the past and that it saw fiscal first-quarter earnings about the same as those reported for the fourth quarter and year-ago period.
The world's No. 2 personal computer maker -- which earlier reported net income for the fourth quarter ended Jan. 28 that was little changed with the year-ago quarter -- said it stood by the estimates it had lowered last month, forecasting revenue growth in the low 30 percent range and net profit margins of around 7 percent.
``We believe an appropriate model for ... the year ahead is for top-line growth in the low 30 percent range next year, with net margins in the low-to-mid 7 percent area, ' Chief Financial Officer Tom Meredith told analysts during a conference call.
``That is a lower annual growth level than we've delivered in the early part of this past year, but one that is a more sustainable goal going forward,' he said, repeating the company's effort to recast investor expectations well below its recent 40 percent rate and historic level above 50 percent.
Commenting on the first quarter, Meredith said: ``It would be easy to assume that EPS (earnings per share) will be flat sequentially at 16 cents per share.'
The current consensus estimate for the first quarter ending in April was 16 cents per share, according to First Call/Thomson Financial, which surveys analysts. Dell reported earnings of 16 cents a share in the year-earlier period.
``From a revenue standpoint, our goal is mid-single digits sequential growth in the first quarter ... and in the subsequent quarters, our goal is to rise somewhat above that low, to drive into the low 30 percent range for the year as a whole,' he added.
Also during the conference call, Dell officials said the company would continue to expand beyond its traditional focus on PC systems, as well as more recent moves to provide Internet access and technical services.
Within the next few weeks Dell said it would unveil a Web hosting business, where the company would supply and manage company online site operations -- first for small and medium-sized business customers and eventually large corporate accounts.
The Web hosting business would be aimed at customers running both Windows 2000, Microsoft's new operating system, and rival Linux software, which has become popular in operating Web sites.
Does anyone think Dell is still a good investment?
Stock Bull |
