Reuters: Technology News: Dell results disappoint Street, shares dive

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Dell results disappoint Street, shares dive May 22nd 2012, 21:04 Tweet Share this Email Print Related News UPDATE 3-Ralph Lauren sees Europe problems hitting sales 2:48pm EDT UPDATE 3-Medtronic net up, but weak spine-product sales weigh 2:43pm EDT Flurry of arguments starts Gupta insider-trading trial Mon, May 21 2012 Historic Facebook debut falls flat Fri, May 18 2012 Historic Facebook debut falls short of expectations Fri, May 18 2012 Analysis & Opinion The Facebook earnings-forecast scandal Samsung investors should worry less about Apple Related Topics Tech » Hot Stocks » Asian Markets » Media » A man wipes the logo of the Dell IT firm at the CeBIT exhibition centre in Hannover February 28, 2010. Credit: Reuters/Thomas Peter By Poornima Gupta SAN FRANCISCO | Tue May 22, 2012 5:04pm EDT SAN FRANCISCO (Reuters) - Dell Inc forecast disappointing second-quarter revenue as U.S. and European corporate tech-spending weakens and consumer personal computer sales continue to shrink, hammering its shares. Shares in the company, which like rival Hewlett-Packard Co is losing market share to mobile devices such as Apple Inc's iPad, dived more than 9 percent in after hours trade. The world's No. 3 PC maker forecast a 2 to 4 percent revenue gain this fiscal quarter, to $14.7 billion to $15 billion, well short of the $15.4 billion Wall Street had been expecting. "Clearly we are seeing a bit more challenging demand environment," Dell Chief Financial Officer Brian Gladden said in an interview. "Europe, in general, was down for us." Demand from U.S. federal businesses appears to be improving slightly, he noted. "We are seeing a pretty good pipeline there." Dell's quarterly revenue fell more than analysts had expected, hurt by weak sales to consumers, large enterprises and government units. PC makers have struggled with slowing demand as mobile devices such as the iPad erode market share. Sales to consumers took a big hit, with consumer revenue slipping 12 percent to $3 billion. Sales to large corporations declined 3 percent to $4.4 billion. Dell said revenue in its fiscal first quarter declined 4 percent to $14.4 billion, below the average analyst estimate of $14.9 billion according to Thomson Reuters I/B/E/S. Excluding one-time items, the company earned 43 cents, less than the average Wall Street estimate of 46 cents. Net income fell to $635 million, or 36 cents a share, from $945 million, or 49 cents a share, a year earlier. Dell's shares traded at $13.50 after hours, down from a $15.08 close on Nasdaq. (Reporting By Poornima Gupta; Editing by Richard Chang) Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.

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