Feeds

Dell stuns investors with rare revenue miss

Desktop dive

Security for virtualized datacentres

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. ®

Security for virtualized datacentres

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Israeli spies rebel over mass-snooping on innocent Palestinians
'Disciplinary treatment will be sharp and clear' vow spy-chiefs
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Found inside ISIS terror chap's laptop: CELINE DION tunes
REPORT: Stash of terrorist material found in Syria Dell box
Show us your Five-Eyes SECRETS says Privacy International
Refusal to disclose GCHQ canteen menus and prices triggers Euro Human Rights Court action
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
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?
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.