Dell’s CFO: Our Demise Is “Overworked”

Maybe Dell (DELL) isn’t dead just yet.

Dell CFO Jim Schneider on Tuesday dismissed talk of the computer giant’s demise as “overworked” and predicted the company will continue to grow, albeit more slowly than in the past.
The U.S. consumer segment represents 15 percent of Dell’s business, and Mr. Schneider acknowledged the segment had recently declined year-over-year.
“If you’re good in most parts of the business, but if you have a segment that large, it drags down the P&L,” he said during a presentation at the Raymond James IT Supply Chain Conference in New York City.
But he dismissed the notion that Dell’s business model was not working and that recent results reflected the company’s demise. He said those predictions were “more than a little overworked right now.”
Mr. Schneider countered that given the company’s large size, aggressively high growth rates are unreasonable, although he did believe growth was still achievable.
Mr. Schneider added that Dell performed well in most business segments, growing 20 percent in the international market, although that was balanced by a low consumer growth rate in the United States.

Posted by on November 15th, 2005 at 2:45 pm


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