Result and prospect of lower than expected sales for Dell
Dell on Tuesday announced a profit below expectations on account of its fiscal fourth quarter and forecast sales below Wall Street forecasts for the current quarter This has reduced the action in the off-market transactions.
The world number three personal computers is expected to drop 7% of its revenue this quarter compared to the previous. Revenues for the fourth quarter being raised to $ 16 billion, this amounts to provide a revenue of $ 14.9 billion for the first quarter, while Wall Street expects about 15.2 billion.
The fourth quarter result also showed lower than expected despite healthy sales to businesses (5% yoy, to $ 4.9 billion).
But sales to the public sector showed signs of weakness (-1% to 3.9 billion). The consumer sales were down 2%.
"With a turnover of 65 billion dollars, it takes time to move the needle toward the most relevant sources of income of a strategic perspective. And for now, we do sees no sign of progress, "says the analyst of ISI Group, Brian Marshall. "It will take time for Dell to right the ship."
PC makers are struggling with falling demand, as consumers tend to turn increasingly to mobile devices like the Apple iPad, while floods in Thailand restrict the supply of some components.
Excluding items, Dell reported earnings of 51 cents per share in the fourth quarter while the market was expecting 52 cents.
Gross margin for the quarter was 21.1%, against 20% a year ago.