Michael Dell Hands Off CEO Job - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Business & Finance

Michael Dell Hands Off CEO Job

He officially gave the chief executive's job to company president Kevin Rollins; the computer maker also raised its earnings guidance for the second quarter.

AUSTIN, Texas (AP) -- Dell Inc. founder and chairman Michael Dell handed over the chief executive's job to president Kevin Rollins on Friday as the computer giant raised its earnings guidance for the second quarter, citing better results from operations and a lower global tax rate.

Michael Dell, who started the company in 1984 while a student at the University of Texas, announced in March that he was stepping down as CEO and made the move official at the company's annual stockholder's meeting.

Before the meeting, the company announced it expects to earn 31 cents a share in the quarter ending July 30, an increase of 29 percent from a year ago and two cents per share better than initial guidance.

Analysts surveyed by Thomson First Call had expected earnings of 29 cents a share for the quarter.

Company officials said in a statement that higher operating profitability is expected to produce per-share earnings of 30 cents, with the balance of the guidance increase attributable to a further decline in the manufacturer's global tax rate.

The company said it still expects second-quarter revenue of $11.7 billion and a second-quarter tax rate of 24 percent. That brings the average rate for the first half of the year to 26 percent, which is consistent with current expectations for all of fiscal 2005, given continued strong growth in business outside the United States, the company said.

Dell is expected to report second-quarter earnings on Aug. 12.

Michael Dell said Rollins has helped him run the company for the past seven years.

"While I've been getting most of the credit, there is no single person who deserves more recognition for Dell's great accomplishments than Kevin Rollins," he said. "Kevin's new CEO title is as much about recognizing what he's already done as it is about our confidence in his many future contributions."

The founder added that as chairman he would remain "fully engaged as ever" in the company's affairs.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Commentary
Future IT Teams Will Include More Non-Traditional Members
Lisa Morgan, Freelance Writer,  4/1/2020
News
COVID-19: Using Data to Map Infections, Hospital Beds, and More
Jessica Davis, Senior Editor, Enterprise Apps,  3/25/2020
Commentary
Enterprise Guide to Robotic Process Automation
Cathleen Gagne, Managing Editor, InformationWeek,  3/23/2020
Register for InformationWeek Newsletters
Video
Current Issue
IT Careers: Tech Drives Constant Change
Advances in information technology and management concepts mean that IT professionals must update their skill sets, even their career goals on an almost yearly basis. In this IT Trend Report, experts share advice on how IT pros can keep up with this every-changing job market. Read it today!
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll