June 2008 -- In 2007 Dell Inc. shipped more units—39.1 million—than it did in its first 16 years of
existence. For that year, Dell also reported the generation of $57 billion in revenue, a 3%
increase over revenues reported for 2006. For 2007 Dell reported earnings per share of $1.14.
Nevertheless, slipping operating metrics motivated Michael Dell, chairman and CEO to restore
leadership with a new executive leadership team. "Together we have started retooling the
company, focusing on three key areas: improving our core business, reigniting global growth and
building for the future."
Signs of 2007's slipping performance over 2006 include a 4% reduction in gross margin, a 30%
reduction in operating income and a 22% drop in diluted earnings per share.
On Feb. 28, Dell reported results for its fourth quarter of fiscal year 2008, with revenue up
10% year-over-year to $16 billion, unit growth of 19%, operating income of $776 million and
earnings per share of $0.31. Revenues for the full fiscal year was $61.1 billion, an increase of
6% year-over-year and earnings per share grew 15% to $1.31.
