Dell lowers earnings expectations

October 31, 2005

In an after-market announcement, Dell Inc. lowered its earnings estimate for its third fiscal quarter.

Dell said Tuesday it expects to achieve earnings of 39 cents a share on a non-GAAP basis, which is at the low end of the range of its previous guidance for fiscal 2006 third quarter, and expects revenue to be approximately $13.9 billion vs. its original guidance of $14.1 to $14.5 billion.

The company said the shortfall in revenue compared to previous guidance was driven in part by the company's U.S. consumer and U.K. businesses, which fell short of expectations. The company said it continues to refocus on higher-value products and services while optimizing profitability.

Dell also said it will take a charge in its fiscal third quarter of approximately $450 million, or roughly 14 cents per share, yielding expected GAAP earnings per share of 25 cents.

The company said that more than $300 million is associated with the cost of servicing systems that included a vendor part that failed to perform to Dell's specifications. This issue is limited to a small percentage of previous generation OptiPlex desktop systems. The charge also includes the costs of workforce realignment, product rationalizations and excess facilities.

Dell will announce financial results for its fiscal third quarter on Nov. 10.

Copyright 2005 by United Press International

Explore further: Dell buying EMC in $67 billion bet on data storage

Related Stories

Dell fiscal 1Q net income jumps 52 percent

May 20, 2010

(AP) -- Computer maker Dell Inc. said Thursday its first-quarter net income rose 52 percent, helped by sales of computers to businesses and technology services to public-sector customers.

Dell 4Q net income more than doubles, shares soar

February 16, 2011

(AP) -- Personal computer maker Dell Inc. said Tuesday its net income more than doubled in the most recent quarter to handily beat expectations, as businesses spent more on computers, servers and other technology.

Dell: PC demand stable stabilizing

July 13, 2009

(AP) -- PC maker Dell Inc. said Monday it expects its fiscal second-quarter revenue to be slightly higher than in the first quarter, when sales plunged 23 percent to $12.3 billion.

Recommended for you

Exploring the physics of a chocolate fountain

November 24, 2015

A mathematics student has worked out the secrets of how chocolate behaves in a chocolate fountain, answering the age-old question of why the falling 'curtain' of chocolate surprisingly pulls inwards rather than going straight ...


Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.