History Of DELL Company:- Michael Dell founded Dell Computer Corporation, dba PCs Limited,in 1984 while a student at the University of Texas at Austin.Operating from Michael Dells off-campus dormitory room at Dobie Center,the startup aimed to sell IBM PC-compatible computers built from stock components. Michael Dell started trading in the belief that by selling personal computer systems directly to customers, PCs Limited could better understand customers needs and provide the most effective computing solutions to meet those needs.Michael Dell dropped out of school in order to focus full-time on his fledgling business, after getting about $1,000 in expansion-capital from his family. In 1985, the company produced the first computer of its own design — the Turbo PC, sold for US$795— containing an Intel 8088-compatible processor running at a speed of 8 MHz. PCs Limited advertised the systems in national computer magazines for sale directly to consumers, and custom assembled each ordered unit according to a selection of options. This offered buyers prices lower than those of retail brands, but with greater convenience than assembling the components themselves. Although not the first company to use this model, Limited became one of the first to succeed with it. The company grossed more than $73 million in its first year of trading. In 1987, the company dropped the PC’s Limited dba to be Dell Computer Corporation and began expanding globally. The company name better reflected its presence in the business market, as well as resolved issues with the use of “Limited” in a company name in certain countries.The company set up its first international operations in Britain; eleven more followed within the next four years. In June 1988, Dell Computers market capitalization grew by $30 million to $80 million from its June 22 initial public offering of 3.5 million shares at $8.50 a share.In 1989, Dell Computer set up its first on-site service programs in order to compensate for the lack of local retailers prepared to act as service centers. In 1990, Dell Computer tried selling its products indirectly through warehouse clubs and computer superstores, but met with little success, and the company re-focused on its more successful direct-to-consumer sales model. In 1992, Fortune magazine included Dell Computer Corporation in its list of the worlds 500 largest companies. Michael Dell became the youngest CEO of a Fortune 500 company. In 1996, Dell began selling computers via its web site. In 2002, Dell attempted to expand by tapping into the multimedia and home-entertainment markets with the introduction of televisions, Dell Axim handhelds, and Dell DJ digital audio players. Dell has also produced Dell-brand printers for home and small-office use. In 2003, at the annual company meeting, the stockholders approved changing the company name to Dell Inc. to recognize the companys expansion beyond computers. In 2004, the company announced that it would build a new assembly-plant near Winston-Salem, North Carolina; the city and county provided Dell with $37.2 million in incentive packages; the state provided approximately $250 million in incentives and tax breaks. In July, Michael Dell stepped aside as Chief Executive Officer while retaining his position as Chairman of the Board. Kevin Rollins, who had held a number of executive posts at Dell, became the new CEO. In 2005, the share of sales coming from international markets increased, as revealed in the companys press releases for the first two quarters of its fiscal 2005 year. In February 2005 Dell appeared in first place in a ranking of the Most Admired Companies published by Fortune magazine. In November 2005 BusinessWeek magazine published an article titled Its Bad to Worse at Dell about shortfalls in projected earnings and sales, with a worse-than-predicted third-quarter financial performance — a bad omen for a company that had routinely underestimated its earnings. Dell acknowledged that faulty capacitors on the motherboards of the Optiplex GX270 and GX280 had already cost the company $300 million. The CEO, Kevin Rollins, attributed the bad performance partially to Dells focus on low-end PCs. In 2006, Dell purchased the computer hardware manufacturer Alienware. Dell Inc.s plan anticipated Alienware continuing to operate independently under its existing management. Alienware expected to benefit from Dells efficient manufacturing system. On January 31, 2007, Kevin B. Rollins, CEO of the company since 2004, resigned as both CEO and as a director, and Michael Dell resumed his former role as CEO. Investors and many shareholders had called for Rollins resignation because of poor company performance. At the same time, the company announced that, for the fourth time in five quarters, earnings would fail to reach consensus analyst estimates. In August 2005, Dell became the subject of an informal investigations by the U.S. SEC.In 2006, the company disclosed that the U.S. Attorney for the Southern District of New York had subpoenaed documents related to the companys financial reporting dating back to 2002.The company delayed filing financial reports for the third and fourth fiscal quarter of 2006, and several class-action lawsuits were filed.Dell Incs failure to file its quarterly earnings report could have subjected the company to de-listing from the NASDAQ,but the exchange granted Dell a waiver, allowing the stock to trade normally.In August 2007, the Company announced that it would restate its earnings for fiscal years 2003 through 2006 and the first quarter of 2007 after an internal audit found that certain employees had changed corporate account balances to meet quarterly financial targets.The SEC investigation was ongoing as of April 2010, and the Company announced that some ex-employees might face civil action from the SEC. On March 1, 2007, the company issued a preliminary quarterly earnings report showing gross sales of $14.4 billion, down 5% year-over-year, and net income of $687 million (30 cents per share), down 33%. Net earnings would have declined even more if not for the effects of eliminated employee bonuses, which accounted for six cents per share. NASDAQ extended the companys deadline for filing financials to May 4.
Posted on: Tue, 30 Dec 2014 16:40:01 +0000
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