DELL: A Smaller Slice of a Shrinking Pie

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By Douglas A. McIntyre Published

By Willaim Trent, CFA of Stock Market Beat

Dell Reports Preliminary Revenue of $14.4 Billion; Preliminary Earnings Per Share of $0.30: Financial News – Yahoo! Finance

Dell (DELL) reported preliminary results for the fourth quarter of fiscal year 2007, with revenue of $14.4 billion, operating income of $801 million, and earnings per share of $0.30. Dell ended the quarter with $12.5 billion in cash and investments.

That revenue number marks a decline of more than 5% on a year/year basis. And with Dell shrinking, and both Hewlett Packard (HPQ) and Ingram Micro (IM) expecting revenue growth to slow, we wouldn’t be surprised if the industry as a whole posted lower revenue in the quarter. It wouldn’t be hard, as Gartner was already forecasting it would be flat. Dell appears to have a smaller slice of what may be a smaller pie.
This despite the Windows Vista launch.

Meanwhile, we still have no balance sheet or statement of cash flows due to the ongoing options investigation. Move along, folks. There’s nothing to see here.

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Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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