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 profit plunges on disappointing sales

Related Stories

Lenovo 3Q profit up by half, warns of disk supply

February 9, 2012

(AP) -- Lenovo Group Ltd., the world's second biggest personal computer maker, said Thursday that quarterly profit grew by more than half but warned hard drive costs would remain high amid a global shortage.

Carl Icahn ends takeover battle for PC maker Dell (Update)

September 9, 2013

Billionaire investor Carl Icahn is giving up his bitter takeover fight for Dell Inc. a few days before shareholders are scheduled to consider the latest buyout offer from the struggling computer maker's founder Michael Dell.

Dell's 2Q earnings fall 72 pct amid PC sales slide (Update 2)

August 15, 2013

Dell's woes worsened during its most recent quarter as the slumping personal computer maker resorted to rampant price cutting to slow a sales decline driven by a growing reliance on smartphones and tablets to connect to the ...

Dell CEO ups ante in buyout battle for PC maker (Update 2)

August 2, 2013

Just when it looked as if he might be vanquished, Dell CEO Michael Dell has regained the advantage in the lengthy battle to buy the slumping personal computer maker that he founded nearly 30 years ago. He did it by persuading ...

Recommended for you

Horn of Africa drying ever faster as climate warms

October 9, 2015

The Horn of Africa has become increasingly arid in sync with the global and regional warming of the last century and at a rate unprecedented in the last 2,000 years, according to new research led by a University of Arizona ...

What are white holes?

October 9, 2015

Black holes are created when stars die catastrophically in a supernova. So what in the universe is a white hole?

Could 'The Day After Tomorrow' happen?

October 9, 2015

A researcher from the University of Southampton has produced a scientific study of the climate scenario featured in the disaster movie 'The Day After Tomorrow'.

A mission to a metal world—The Psyche mission

October 9, 2015

In their drive to set exploration goals for the future, NASA's Discovery Program put out the call for proposals for their thirteenth Discovery mission in February 2014. After reviewing the 27 initial proposals, a panel of ...

The universe's most miraculous molecule

October 9, 2015

It's the second most abundant substance in the universe. It dissolves more materials than any other solvent. It stores incredible amounts of energy. Life as we know it would not be possible without it. And although it covers ...


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.