21st Century IR

  • Opportunities for Individual Investors to meet with Dell IR

    Starting today and through this weekend, we are attending the Better Investing National Convention in Schaumburg, Illinois - one of several conferences from the National Association of Investors Corporation (NAIC) that cater to individual investors.  The conference is set up as a means for individual investors to learn best practices for investing and more about financial planning.  The conference hosts classes, seminars and conversations with investor relations professionals from exhibitors and corporate sponsors.

    So why are we there you ask?  Individual investors own roughly 20% of Dell and this is one of many opportunities for us to be involved in direct relationships with you, our current and potential shareholders.  This conference is yet another way to interact with company representatives, educate yourself and become informed and knowledgeable about us and other companies.  We will also be attending other conferences such as the Money Show in Washington DC, November 6-8, 2008 and The World Money Show in Orlando, FL, February 4-7, 2009.  Moreover, we look forward to seeing our stockholders at the 2008 Annual Meeting of Stockholders that will take place on July 18th here in Austin, Texas. 

    We'll be at the Renaissance Hotel in Schaumburg, Illinois. Come see us at booth #214 - we hope to see you there.

  • Notice and Access and Interactive Year-in-Review

    In preparation of our upcoming Annual Meeting of Stockholders on July 18th in Austin, we filed our proxy documents this week and began mailing ‘notice’ to shareholders.  In the past, we mailed shareholders paper documents, including an annual report, proxy statement and voting instructions.  As a result of a U.S. Securities and Exchange Commission e-proxy rule, public companies are now allowed to provide their proxy materials over the Internet, which is commonly referred to as ‘notice and access.’

    So what’s different this year?  The e-proxy rule requires us to mail a ‘notice’ to shareholders.  This ‘notice’ provides instructions on how to ‘access’ proxy materials and related company information over the Internet, as well an option to continue receiving a paper copy of the proxy statement, annual report and voting instruction card.  We believe that this new process is important – it will conserve natural resources and reduce the costs of printing and distributing proxy materials.  Since we must provide this filing at least 40 days before the shareholders’ meeting, it will also provide shareholders with immediate access to the information they should review.

    Why are we blogging about it now?  It’s a big change and we wanted to make the transition as easy as possible.  We filed our proxy statement on Monday, June 2nd and will begin mailing ‘notices’ to you this Friday, June 6th.  Once you receive your notice in the mail, you can access the voting page online, where you will find:  the proxy statement, our annual report on form10-K, a link to our 2008 interactive year-in-review website and information on the time and location of our annual meeting of stockholders.

    In coordination with the online voting migration, we have re-designed our 2008 interactive year-in-review website that includes our chairman’s letter, a video from Michael, a synopsis of our key growth priorities, financial summary charts and easy-to-print PDF’s of all of the material on the site.  Additionally, we have included easy to access links to our shareholder meeting webpage and the proxy voting website for your convenience.  We encourage you to review the interactive review online and provide feedback on how you like the new format.  

    Proxy voting is an important means by which you as an investor can have a say in the business operations and activities of Dell.  Whether you plan to attend our annual meeting on July 18th or not, we value your opinion and your vote.  Shareholder feedback enables us to serve you better.  We’re listening.

  • DellShares Discusses Sustainability at Dell

    HBS Professor, Nitin Nohria once said "communication is the real work of leadership."  This has never been more true at Dell than right now.  We launched DellShares with a commitment to reach out to our institutional and retail investors to discuss items relevant to our strategy, our financial results, and progress on our initiatives.  An important part of this progress is communicating Dell's commitment to sustainability. 

    As we write our 2008 annual sustainability report and reflect on our progress, we want to reach out to all stakeholders, and in particular socially responsible investors.  SRI funds now represent over 10% of the $25 trillion U.S. equity market, and this trend is only growing.  Through DellShares, we hope you will join us for a quarterly dialogue on Dell's progress on corporate governance, environment responsibility or community engagement - these are topics of interest to all of us.

    Sustainability is a multi-year journey for us so it is difficult to capture everything we do in one report.  Many of our programs go back five years or more and are only now coming to fruition.  However, we believe communication is the key - through DellShares we'll address a different topic every quarter.  This quarter we'll focus on Dell's environmental responsibility efforts.

    Dell started with a focus on the Environment.  In fact, our first "Sustainability Report" in 1998 was really an "Environment Report."  Because the environment is most closely tied to our core business, it is where we have made the most public commitments.  Michael pledged last year that we would be carbon neutral by the end of 2008 and that Dell would be the "Greenest Technology Company on the Planet." 

    Those are big commitments, but they were not new.  We had been working towards those for years.  Our products met lead-free requirements ahead of legislation and we are currently working on removing remaining traces of non-regulated BFRs and PVCs.  We are a leader in global product recovery and recycling.  Our products deliver maximum performance per watt.  Our catalogs had over 50% post consumer recycled content and we reduced customer waste by redesigning our product packaging. 

    We also publically report our Greenhouse Gas emissions, lead our industry in operational efficiency, are committed to carbon neutrality and have recently announced that our corporate offices in Round Rock, Texas will be supported by 100% renewable energy.  Dell also reports on our waste that is being recycled, reused and landfilled.  In fact, we currently recycle over 94% of our own waste from manufacturing with public a goal to avoid 99% by 2012. 

    In fiscal 2008, we launched ReGeneration.org, a global community of people who are concerned about the environment.  This site provides a place to network and learn about ways to reduce your impact on the environment.  We invite you to join the ReGeneration!

    The leadership for initiatives like these start from the top at Dell.  We have a Sustainability Council that includes Michael as well as representation from Finance, Legal, Procurement, Marketing, Sales, Investor Relations, HR, Engineering and other groups.  The Sustainability Councils reports progress and results to the Governance and Nominating Committee of the Board of Directors, who in turn, share their council.  This direct engagement enables progress across all areas of sustainable business practices. 

    These are a small portion of achievements we have covered in our Sustainability report.  I encourage you to read our 2007 Sustainability report for more details and look for our 2008 Sustainability report coming in Q2.  We look forward to your comments, and we hope this becomes fruitful dialogue.

  • 3Q Earnings – Making Steady Progress to Long-Term Goals

    Tonight, we announced the results from our fiscal third quarter and hosted our first conference call in over a year (a replay of the call and downloads of the financials & presentation can be found here).  Since wrapping up our investigation, this was our first opportunity to host an earnings call to discuss not only our most recent quarter's results, but the long-term strategy of our company

    Before getting into some of the details around our earnings, and consistent with this blog's purpose, I wanted to highlight the value and importance of listening to earnings calls - not just our own, but of any company's.  These calls provide investors and analysts (including individual shareholders to institutional investors, and sell-side brokerage analysts) one of the best ways to keep abreast of a company's performance and strategic priorities.   You are welcome to join ours or listen to the replay (here).

    As for our performance in the third quarter, the key takeaways were that we improved revenues, units, and profitability. We saw strength in our mobility products and continued to expand our business in international markets - particularly in Europe and Asia. We achieved $766 million in net income, generated roughly $1 billion in cash from operations, and drove our cash and investments balance up to $14.6 billion. This in particular is important because when we talk about creating value for our shareholders, cash generation is the ultimate litmus test, and essentially our goal is to maximize cash flows from operations over the long-term

    During the call, Michael Dell, Don Carty and Steve Schuckenbrock discussed our efforts and progress towards improving our current business, re-igniting growth, and building for the future. Here, we touched upon our new executive leadership team and global business groups, new XPS products and small business product line, and factory openings in Latin America and Eastern Europe. And with our recent acquisitions of Zing, Silverback, ASAP, and our planned acquisitions of EqualLogic and Everdream, you are seeing us expand our portfolio of products and services and position ourselves for long-term growth.

    Each specific business priority is part of the larger picture of business priorities that are being driven by our belief that information technology can be simplified and that we can drive long term shareholder value by focusing on growth in the consumer market, emerging countries, notebooks, solutions for the enterprise, and products and services for small to medium sized businesses. Our goal is to grow faster than the addressable opportunity in these areas, while keeping the company focused on driving strong cash flows from operations. These are more than ample growth opportunities for growth; the key will be to prioritize and execute.

    We feel 3Q's results highlight the progress we're making towards our strategic priorities and building for the future. We're making good progress towards these goals, but there's more to be done To be sure, the path of progress won't be completely linear, but that happens sometimes when you're building and investing for the future.

  • Welcome to 21st Century IR

    Michael Dell said to Bloomberg in July "We have an enormous opportunity in front of us, but it will require some changes''.  Dell Shares, our new investor relations blog is among those changes and opportunities. It's an exciting initiative for all of us on the Investor Relations team. 

    It is an opportunity for us to go beyond posting information on the investor relations section at dell.com and to be accessible and available, share perspectives and build and maintain relationships with our investors, potential investors and anyone and everyone who is interested in joining the conversations here.

    Dell Shares is not just about us and Dell financial information.  It is also about you. Relationships are two way streets with shared benefits and responsibilities.  So, we expect to listen and learn from you - our investors and those participating in this journey. 

    Twenty three years ago, Dell was founded on the premise that direct relationships with customers was a tremendous competitive advantage.  It was and still is.  To keep growing and meet changing markets, however, Dell's businesses are also expanding into other sales and distribution channels. 

    So it is with communicating to investors.  While we speak to thousands of current and potential investors every year using traditional communications tools, this is an evolution to communicate using some of the web-based tools that foster more interaction. To keep growing and enhance our relationships with investors and others who might be considering our stock, we see that markets, information sources and how people want to interact are changing.  Credible and relevant organizations today are taking advantage of technology and the Web to share information and connect directly with customers, suppliers, employees and other stakeholders.

    There is no reason we shouldn't take advantage of these trends and reach beyond the traditional media and analysts to connect directly with investors or others interested in our company.  Dell's direct business model and the work of our colleagues demonstrate the value of our direct relationships with our customers.  It is part of our corporate DNA and an asset to the company.  Therefore, Dell Shares is about Investor Relations at Dell expanding beyond the traditional approaches to IR with a view to being involved in direct relationships with our shareholders and potential shareholders. 

    You may have already seen the fruits of our early efforts in the form of our new IR RSS feeds, email alerts, investor tools, and other innovative programs.  Dell Shares keeps us moving forward.  We expect to not just push out information, but to share perspective and understandings.  We hope that means that the information will be given context and meaning, that it becomes more digestible and accessible, that you can share the information, perhaps we could say we want to democratize financial information beyond just filing public data.  While we urge you to review the Dell Shares and Dell Online policy statements, you can expect timely posts from the IR team (and sometimes company executives) on business performance and strategy.

    We'll also post your comments and questions, which we'll respond to- where appropriate - in a timely manner. Dell Shares is a new effort, maybe among the first in the industry, to establish an Investor Relations blog that not only increases the flow of information, but also opens up a dialogue.  As Michael Dell recently noted  there are conversations going on about us all the time and we want to be part of those conversations -- to listen, to learn and to contribute.  We hope Dell Shares will be among your choices of places to come for perspective and commentary on Dell. 

    Sometimes, however, we may be quiet, as there are periods of the quarter and various topics we can't talk about, such as forward looking statements or non-publicly disclosed information (see RegFD).  We hope you will understand some of the constraints and legal obligations that may, from time to time, limit our commentary.  Also, have a little patience with us, because some of these limitations may also slow us down as we learn and sort our way through this new field. 

    However, we do want you to seize this opportunity and take on the responsibility to educate yourself and become an informed and knowledgeable Dell investor. Ideally, this blog will serve as an additional source of information to your own informed and sound financial decisions.

    We look forward to making Dell Shares an example of an unfiltered view of company strategy, performance, and results and place where direct shareholder relations are strengthened.  We also hope Dell shares offers you a great place to become more informed as an investor.

    As Michael Dell said to Bloomberg on winning back investor confidence ``it will take as long as it takes...we are making investments, investments we believe will be required for the long term. We are not looking to do something in the short term that will dramatically improve our results but cause a problem later on.''

    Dell Shares is also about an investment in the long term that will dramatically improve our direct relationships with our owners and the information you have to make informed financial decisions.  We are excited about the journey we are embarking on with you.

    We look forward to hearing from you.

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