Dell Efficient IT Solutions Growth Strategy Driving Its Stronger Financial Performance
- Executives share vision for long-term value creation at annual meeting of stockholders
- Revenue over past four completed quarters exceeded company’s long-term, 5-7 percent growth goal
- GAAP operating income of 6.7 percent during past four completed quarters near 7 percent goal
Dell’s strategy to develop its capability as an efficient technology solutions provider, grow faster than the industry in strategic areas and shift the company’s mix to higher-value products and solutions was outlined here today at the company’s annual stockholders meeting.
During the meeting, Michael Dell, chairman and CEO, and Brian Gladden, chief financial officer, reviewed the company’s business progress and its competitively differentiated strategy to deliver solutions that are highly capable, affordable and flexible to meet the needs of large enterprises, public institutions, small and mid-size businesses.
Mr. Dell described the company’s focus on next-generation computing solutions and intelligent data management; services, security and cloud; and end-user computing, which are critical to driving industry leadership and growing operating income and cash flow over time.
“We are investing for growth, building on our strengths and have developed the solutions portfolio that our customers value,” said Mr. Dell. “We’ve made significant progress and it is reflected in our financial performance.”
Mr. Gladden described key priorities underway to enable the company to deliver on its long-term value creation framework of 5-7 percent revenue growth, GAAP operating income of more than 7 percent and cash flow from operations exceeding net income. He also said the company will continue to invest in differentiated enterprise solutions and services to help the company reach its goals.
“We’re increasingly optimistic about our development of important capabilities for the company and the delivery of new solutions for our customers, and encouraged by the financial results we’ve delivered,” said Mr. Gladden.
In formal business at the meeting, stockholders:
- Re-elected 10 company directors: James W. Breyer; Donald J. Carty; Michael S. Dell; William H. Gray, III; Gerard J. Kleisterlee; Thomas W. Luce, III; Klaus S. Luft; Alex J. Mandl; Shantanu Narayen; and, Ross Perot, Jr.;
- Approved the compensation of Dell’s named executive officers as disclosed in the company’s proxy statement;
- Approved one year as the frequency with which Dell holds a stockholder advisory vote to approve the compensation of its named executive officers;
- Rejected a stockholder proposal to adopt a policy that the Board’s chairman be an independent director;
- Rejected a stockholder proposal to permit the company’s stockholders to act by written consent instead of at a meeting of stockholders;
- Rejected a stockholder proposal that the Board declare a quarterly dividend; and,
- Ratified PricewaterhouseCoopers LLP as Dell’s independent auditor for fiscal 2012.
Judy Lewent and Sam Nunn, company directors since May 2001 and December 1999 respectively, retired from the Board, effective today, as previously announced.
“Dell and its stockholders have benefitted greatly from the leadership and perspective Judy and Sam have provided,” said Mr. Dell. “We’re grateful for their guidance during their time on the Dell Board, and we wish them well in all their endeavors.”
Presentations and other information for the stockholders meeting can be found at: www.dell.com/investors.
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