•
Executives
share vision for value creation at annual meeting of stockholders
•
Strategic
investments driving end-to-end solutions with scalable design point
•
Previously
announced quarterly dividend program to begin in third fiscal quarter
Dell executives today addressed the company’s significant progress in becoming an end-to-end provider of enterprise solutions and services and the ongoing commitment to that strategy at its annual stockholders meeting.
“Through strategic acquisitions and organic growth, we are creating innovative solutions that provide more value and competitive edge for our customers,” Michael Dell, chairman and CEO, told stockholders. “By doing so, we are also creating long-term value and growth for our company and for our stockholders.”
Mr. Dell and Brian Gladden, Dell CFO, outlined the steps taken by the company to establish Dell as a full-service solutions company, and how the company’s business has shifted, with enterprise solutions and services accounting for 50 percent of its gross margin in the first quarter of fiscal year 2013. Among those actions was the formation earlier this year of a Software Group to add to Dell’s enterprise solutions capability, accelerate strategic growth and further differentiate the company from competitors with standards-based, scalable and flexible Dell-owned intellectual property.
Dell is building its software portfolio in part through strategic acquisitions. The company recently announced a definitive agreement for Dell to acquire Quest Software, an award-winning IT management software provider offering a broad selection of IT solutions. The Quest acquisition is expected to be completed in Dell’s fiscal third quarter. Dell has made eight acquisitions in the last 12 months and 16 in the past two years.
“We continue to be keenly focused on driving shareholder return. The key to our success is growing enterprise solutions, services and software (ESS&S) at a rate faster than the market,” Mr. Gladden said. “Our steady growth in the percentage of revenue from ESS&S over the past three years has improved gross margins and driven strong cash flow.”
Success of these efforts was evidenced by the June 12 announcement that its Board of Directors adopted Dell’s first-ever dividend policy, under which the company intends to pay quarterly cash dividends on its common stock beginning in the third quarter of the current fiscal year. The initial dividend rate is expected to be $0.32 per share per year, or $0.08 per share quarterly.
“We remain committed to increasing the return of capital to shareholders. We are reinvesting in the company in research and development, capital expenditures and acquisitions while maintaining an ongoing share repurchase program and, now, providing for the payment of a quarterly cash dividend to Dell’s shareholders,” Mr. Gladden said.
In formal business at the meeting, stockholders:
• Re-elected 12 company directors: James W. Breyer; Donald J. Carty; Janet F. Clark; Laura Conigliaro; Michael S. Dell; Kenneth M. Duberstein; William H. Gray, III; Gerard J. Kleisterlee; Klaus S. Luft; Alex J. Mandl;Shantanu Narayen; and, Ross Perot, Jr.
•
Ratified
PricewaterhouseCoopers LLP as Dell’s independent auditor for fiscal 2013;
•
Approved
Dell’s compensation of its named executive officers as disclosed in the proxy
statement; and,
•
Approved
the Dell 2012 Long-Term Incentive Plan.
Thomas
W. Luce, III, a company director from November 1991 to September 2005 and
September 2006 to present, retired from the Board, effective today, as
previously announced.
“We are extremely appreciative and have benefitted tremendously from the leadership Tom has provided in his years on the Dell Board and in his service to our country,” said Mr. Dell.
Presentations and other information for the stockholders meeting can be found at: www.dell.com/investors.
About Dell
Dell
Inc. (NASDAQ: DELL) listens to customers and delivers worldwide innovative
technology, business solutions and services that give them the power to do
more. For more information, visit www.Dell.co.uk.
Dell is a trademark of Dell Inc.
Dell
disclaims any proprietary interest in the marks and names of others.
Special Note:
Statements
in this press release that relate to future results and events (including
statements about Dell’s financial results, dividend policy, acquisitions and
strategic focus) are forward-looking statements and are based on Dell's current
expectations. In some cases, you can identify these statements by such
forward-looking words as “anticipate,” “believe,” “could,” “estimate,”
“expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will”
and “would,” or similar expressions. Actual results and events in future
periods may differ materially from those expressed or implied by these forward-looking
statements because of a number of risks, uncertainties and other factors,
including: intense competition; Dell’s reliance on third-party suppliers for
product components, including reliance on several single-sourced or
limited-sourced suppliers; Dell’s ability to achieve favorable pricing from its
vendors; weak global economic conditions and instability in financial markets;
Dell’s ability to manage effectively the change involved in implementing
strategic initiatives; successful implementation of Dell’s acquisition
strategy; Dell’s cost-efficiency measures; Dell’s ability to effectively manage
periodic product and services transitions; Dell’s ability to deliver consistent
quality products and services; Dell’s ability to generate substantial non-U.S.
net revenue; Dell’s product, customer, and geographic sales mix, and seasonal
sales trends; the performance of Dell’s sales channel partners; access to the
capital markets by Dell or its customers; weak economic conditions and
additional regulation affecting our financial services activities; counterparty
default; customer terminations of or pricing changes in services contracts, or
Dell’s failure to perform as it anticipates at the time it enters into services
contracts; loss of government contracts; Dell’s ability to obtain licenses to
intellectual property developed by others on commercially reasonable and
competitive terms; infrastructure disruptions; cyber attacks or other data
security breaches; Dell’s ability to hedge effectively its exposure to fluctuations
in foreign currency exchange rates and interest rates; expiration of tax
holidays or favorable tax rate structures, or unfavorable outcomes in tax
audits and other compliance matters; impairment of portfolio investments;
unfavorable results of legal proceedings; Dell’s ability to attract, retain,
and motivate key personnel; Dell’s ability to maintain strong internal
controls; changing environmental and safety laws; the effect of armed
hostilities, terrorism, natural disasters, and public health issues; and other
risks and uncertainties discussed in Dell’s filings with the Securities and
Exchange Commission, including its Annual Report on Form 10-K for its fiscal
year ended February 3, 2012.
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