Dell: PC demand stable stabilizing

Jul 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.

Dell's second quarter ends July 31. In a statement, the Round Rock-based company also said demand for its computers, servers and other technology "appears to have stabilized."

Its revenue in last year's fiscal second quarter totaled $16.4 billion. A decline similar to what Dell saw in its first quarter would result in current-quarter sales of about $12.8 billion.

Wall Street already expects Dell to top first-quarter revenue, though just barely. Analysts polled by Thomson Reuters predict Dell will report $12.5 billion in sales for the second quarter.

Dell, the No. 2 PC maker in the world behind Hewlett-Packard Co., didn't go so far as to declare the end of the computer-industry slump, and said demand still varies significantly by product and region.

It also cautioned that quarterly gross margins will fall below first-quarter levels due to higher component costs, pressure to set prices low to keep up with competitors, and the recession-fueled popularity of inexpensive and less profitable computers.

The PC maker issued the statement on the eve of its annual meeting with Wall Street analysts. During Tuesday's executive briefings, analysts will be looking for signs of upcoming acquisitions, among other things. Dell's chief financial officer, Brian Gladden, said in Monday's statement that Dell is "investing to expand on existing capabilities and extend into new areas."

Dell's shares lost 20 cents to close at $13.02, then fell 50 cents, or 3.8 percent, to $12.52 after hours.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: EU Parliament votes to break up Google

add to favorites email to friend print save as pdf

Related Stories

Adobe 1Q profit, sales drop, squeezed by downturn

Mar 17, 2009

(AP) -- Adobe Systems Inc., the company behind the popular Photoshop software, posted a decline in fiscal first-quarter profit and sales Tuesday, squeezed by the economic downturn.

National Semiconductor to cut 1,725 jobs

Mar 11, 2009

(AP) -- Faced with a steep decline in sales, chip maker National Semiconductor Corp. said Wednesday it will eliminate more than one-quarter of its work force, or 1,725 jobs.

Recommended for you

EU Parliament votes to break up Google

Nov 27, 2014

The European Parliament voted overwhelmingly for the break-up of Google Thursday in a largely symbolic vote that nevertheless cast another blow in the four-year standoff between Brussels and the US Internet ...

Toyota finds new air bag issue, recalls more cars

Nov 27, 2014

Toyota Motor Corp. recalled more than 40,000 vehicles in Japan on Thursday as part of a worldwide scare over defective air bags and is investigating a new type of air bag problem that could lead to further recalls.

Netflix sues Yahoo CIO for alleged kickbacks

Nov 26, 2014

Netflix is suing a former company vice president who is now chief information officer at Yahoo, accusing him of receiving money from vendors he hired to work with the video streaming company.

User comments : 0

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.