Dell records 48 percent drop in net income

From InfoWorld: Dell's net income dropped 48 percent for the fourth quarter, the company said Thursday, as it also announced it is increasing its cost-cutting goal to $4 billion by the end of fiscal 2011 as it tries to come to terms with the recession.

The company recorded net income of $351 million for the fourth quarter ended Jan. 30, a 48 percent drop from the $679 million it recorded in last year's fourth quarter. Net income per share was $0.18. Analysts polled by Thomson Reuters expected net income of $496 million.

Revenue fell to $13.4 billion, a 16 percent drop from a year ago, and short of analyst estimates of $14.2 billion.

Reduced IT spending has taken its toll on the company, with spending deferred until the economy improves, CEO Michael Dell said in a statement. However, the company is taking other steps to reduce costs to adapt to the recession.

The company now aims to reduce costs by $4 billion by the end of fiscal 2011, a change from the original target of $3 billion announced in May.

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