Dell’s profits take a nosedive, fall 23%

Thu, Aug 27, 2009


WSJ reports:

Dell Inc.’s quarterly profit fell 23% as the computer maker continued to be squeezed by depressed corporate spending and plunging PC prices. But executives said they were seeing signs that the beleaguered PC industry is beginning to recover.

For the fourth straight quarter, the No. 2 PC maker by shipments posted a drop in sales and profit from a year earlier. But in a sign Dell’s business may be stabilizing, it said sales rose slightly from earlier this year.

Dell posted earnings for its fiscal second quarter ended July 31 of $472 million, or 24 cents a share, down from $616 million, or 31 cents, a year earlier. Revenue was $12.76 billion, down 22% from a year ago.

“We continue to see a very challenging environment, but we do see demand stabilizing,” said Brian Gladden, Dell’s chief financial officer, in a conference call. “We would expect some pickup in the second half” of the year.

I wonder if Dell’s new smartphone, dubbed the mini 3i, can save em’.


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