Menu
Dell says demand for products is stabilising

Dell says demand for products is stabilising

Dell says that demand for its products is "stabilising" and that it expects to report a sequential increase in revenue for its second fiscal quarter, which ends July 31.

The computer maker also expects a "modest decline" in gross margins, however, due to higher component costs and a competitive pricing environment, Chief Financial Officer Brian Gladden said in a statement. Gross margins provide a measure of how profitable a company is after its costs of doing business.

Demand for Dell’s products and services seems to have stabilized from this time last year, the company said, but the demand varies significantly by customer segment and geography.

“We continue to believe that customers are deferring IT purchases, and that we will see demand return to more typical levels at some point,” Gladden said in the statement.

Dell's shares on the Nasdaq fell about 4 percent in after-hours trading, to $12.55.

The announcement came ahead of Dell's analyst conference to be held on Tuesday in Austin, Texas.

Dell's revenue has declined sequentially for each of the past three quarters amid the worldwide recession.

Its revenue in the first quarter fell to US$12.3 billion, a 23 percent drop from the same period a year earlier. Net income fell to $290 million from $784 million on lower PC sales and restructuring charges.

Dell remains focused on cutting costs in a "still-challenging operating environment," Gladden said on Monday. Dell has said it wants to reduce its annual costs by around $4 billion by the end of fiscal 2011.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags Dellinternational news

Featured

Slideshows

Opening ice breaker sessions set the scene for EDGE 2017

Opening ice breaker sessions set the scene for EDGE 2017

​EDGE 2017 kicked off with an opening ice breaker session, providing a structured environment for channel executives to form and foster new relationships and business opportunities. Photos by Maria Stefina.​

Opening ice breaker sessions set the scene for EDGE 2017
Show Comments