KUALA LUMPUR, Nov 20 — Malaysia performed fairly well compared to other Asean countries in the fiscal third-quarter 2010, despite a eight per cent decline in Dell’s unit sales.
Dell Inc., together with its subsidiaries, engages in the design, development, manufacture, marketing, sale, and support of computer systems and services worldwide.
Dell’s president of Small and Medium Business, Steve Felice said the decline was not very significant, in the face of an unhealthy economic environment.
“Malaysia is on par with the other countries in the region like Thailand, although unit sales slipped in the third quarter. The decline is also all right while on an economic recovery path,” he told the media in a conference call today.
Steve said Malaysia will continue to be a highly strategic country with Dell continuing investments as it seeks to achieve a solid performance.
He added that Dell is bullish over demand in Malaysia and other countries in Asia Pacific region.
According to Steve, China and India had performed very well in contributing significantly towards revenue and sales and the company is upbeat over the performance of both countries.
“The launch of the Windows 7 will help augment demand in Asia and it will be predominantly seen in the small and medium business (SMB) and consumer base.
“We are confident that with or without the Windows 7, the replacement cycle will be strong. The power, efficiency and features of Dell will continue to prompt this replacement cycle,” he explained.
Dell’s net income dropped 54 per cent to US$337 million (RM1.15 billion) in its fiscal third quarter 2010, ended October 30, compared to the US$727 million recorded over the same period previously.
Revenue also fell 15 percent to US$12.9 billion for the latest quarter compared to US$15.16 billion previously.
Meanwhile, cash flow from operations was again strong, totalling US$801 million.
Steve explained that Dell is anticipating a stronger performance in November as since October, there has been healthy subsequent growth, besides signs of improvement in the overall underlying IT demand.
“For the fourth quarter, Dell expects a seasonal demand improvement in its consumer business. Therefore, we are aiming for the fourth quarter revenue to improve over the third.
“Sequential increases in demand and revenue from business customers highlighted Dell’s third quarter. It reflects the company’s strengthening enterprise-solutions capabilities. Overall operating expenses also continued to decline as a result of strategic cost initiatives,” he said.
Dell has reduced its total operating expenses by US$1.6 billion and made further progress in lowering the cost of goods sold, since committing to a US$4 billion in cost reduction by the end of the next financial year or sooner.
Overall, Steve said the Asean region had performed better on growth than others for Dell in the period stated.
“It will continue to be a high stand point for Dell’s development. We are confident of achieving positive growth in Asia,” he highlighted. - Bernama
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