Feeds

Gloomy Q3 outlook clouds Dell's Q2

Consumers and Feds blamed

SANS - Survey on application security programs

Dell stunned investors Thursday with an uncharacteristic dose of pessimism as it released second quarter results.

As usual, Dell's revenue and profits rose during the second quarter. Dell posted revenue of $13.4bn - a 15 per cent increase over the $11.7bn reported last year. Earnings hit $1.02bn - up 32 per cent from $799m one year ago. Overall shipments were higher. Sales of storage systems, laptops, servers, software and printers jumped as well.

But that's the Dell you've come to expect.

What shocked investors was word that Dell's expects third quarter revenue to come in below forecasts. Dell expects to bring in between $14.1bn and $14.5bn - well under the consensus estimate of $14.6bn.

Dell executives blamed lower than expected consumer and government sales and its own pricing for the drop.

As a direct seller only, Dell prides itself on being able to adjust prices quickly as component costs, demand and rivals' pricing fluctuate. In this case, however, it seems the Dell model failed Dell.

"We got too aggressive," CEO Kevin Rollins told analysts.

Dell has not disappointed Wall Street in many, many months, but investors were more than ready to shed shares on the glum outlook. An after-hours selloff sent Dell shares down more than 7 per cent at the time of this report to $36.60. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.