Feeds

Dell stuns investors with rare revenue miss

Desktop dive

Eight steps to building an HP BladeSystem

A pair of computer glitches have eaten into Dell's third quarter with the company today lowering revenue guidance for the period.

Dell now expects third quarter revenue to come in at $13.9bn - well below a previous revenue range of between $14.1b and $14.5bn. Weak sales of consumer goods in the US and business products in the UK were fingered for the shortfall. The earnings miss stands as a rare occurrence for the hardware maker.

Dell's third quarter plot thickened more as it revealed a $450m charge that will cost it 14 cents per share. More than $300m of the charge stemmed from the cost of fixing OptiPlex desktops that suffered from "a vendor part that failed to perform to Dell's specifications."

"The charge also includes the costs of workforce realignment, product rationalizations and excess facilities," Dell said.

The Austin American-Statesman reported that Dell laid off hundreds of workers last week.

Analysts will be paying close attention to see if Dell's results also suffered as a result of increasing interest in AMD's Opteron processor. Dell is the only major server vendor not to sell servers with the increasingly popular chip, opting for an Intel-only position. Intel has fallen behind its rival with dual-core processor technology, making Opteron servers more attractive to the likes of HP, IBM and Sun Microsystems and their customers.

Dell announces full third quarter results on Nov. 10. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.