Dell's expansion of business outside the U.S. and its sales of servers, storage and enhanced services drove revenue of U.S. $14.2 billion and earnings of $0.33 per share in the fiscal first-quarter 2007.
Dell had operating income of $949 million, or 6.7 percent of revenue, in the quarter, which reflected investments in customer experience as well as pricing decisions the company believes will drive future growth.
The company is investing more than $100 million to regain its leadership position in customer experience. More than 2,000 new sales and support personnel have been hired in the U.S.; call centers have been added or expanded. By the end of the fiscal year, Dell will have opened 14 new manufacturing, call center and design and development facilities over a 2-year period.
Dell is accelerating plans to drive $3 billion of cost improvement in the year including structural material, component and transformational costs as well as improved warranty costs. Dell is making key investments in its top countries, including China, India, Germany, Brazil, and the U.S., to ensure that it can design, manufacture and provide service close to its customers for the long-term.
Dell does expect financial results for the second fiscal quarter of fiscal 2007 to be similar to its first quarter results.
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