Dell News on Ulitzer

Dell Sessions at Cloud Expo

Dell said Wednesday that it figures it can lop $300 million off joint expenses in combining with Perot Systems and grow revenues 5%-7% long-term. It is not yet clear whether it will mean layoffs.

The $3.9 billion acquisition will cost Dell $120 million-$130 million this fiscal quarter ending in January and $20 million-$25 million a quarter through fiscal ‘11.

Perot's integration into the piece of Dell now known as Dell Services that is worth $7.5 billion a year and focused on the mid-market is supposed to be progressing well.

The deal closed last month and Dell has reportedly identified 88 new potential deals since then.

Goldman Sachs reckons it's "less of a strategic fit than HP/EDS."

Separately Dell said it would wrack up expenses of $80 million-$120 million this quarter transferring its manufacturing plant in Poland to Foxconn Technology Group and lay off 700 workers at its plant in Malaysia, 16% of the local workforce, because it's moving some laptop manufacturing elsewhere.

On a brighter note, because of "signs of improving demand," Dell now says it will keep its North Carolina plant open three months longer than it intended. Now it's supposed to shut at the end of April.