Feeds

Gloomy Q3 outlook clouds Dell's Q2

Consumers and Feds blamed

Security for virtualized datacentres

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. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Yes, yes, Steve Jobs. Look what I'VE done for you lately – Tim Cook
New iPhone biz baron points to Apple's (his) greatest successes
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
Edward who? GCHQ boss dodges Snowden topic during last speech
UK spies would rather 'walk' than do 'mass surveillance'
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.