Dell warns of lower Q2 sales
Meets Q1 forecasts
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Dell met sales forecasts for the first quarter, but warned revenues would drop in the second quarter due to the weak US corporate market.
The Texas PC seller yesterday reported earnings of $462 million, or 17 cents per share, for the quarter ended May 4 2001. This compared to $466 million, or 17 cents per share, for the same period the previous year.
Sales rose ten per cent to $8.03 billion.
Regarding the second quarter, Dell said it expected revenue to fall between three and five per cent sequentially from the first quarter.
General worldwide unit shipments grew 27 per cent year-on-year, while sales of PowerEdge servers increased 50 per cent.
"We'd been building an organisation in anticipation of more robust industry growth in the US this year," said Dell president and COO Kevin Rollins.
"Now we're resizing the business and further refining our cost structure, and in the process becoming an even stronger and more competitive company."
Earlier this month Dell said it would lay off between 3,000 and 4,000 staff as part of this general belt-tightening. ®
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