Arab Today, arab today dell’s sales disappoint as it ‘prunes’ pcs
Last Updated : GMT 19:30:38
Arab Today, arab today
Arab Today, arab today

Dell’s Sales Disappoint as It ‘Prunes’ PCs

Arab Today, arab today

Arab Today, arab today Dell’s Sales Disappoint as It ‘Prunes’ PCs

New York - Bloomberg

Dell Inc. (DELL), the third-largest maker of personal computers, missed third-quarter revenue estimates after walking away from $2 billion in potential PC sales to focus on more profitable technology. The Round Rock, Texas-based company gave up billions in “low-value” PC opportunities because it wanted to preserve margins, Vice Chairman Jeff Clarke told analysts on a conference call yesterday. That contributed to revenue declining to $15.37 billion in the period, from $15.39 billion a year earlier. Analysts had projected $15.7 billion. While Dell beat profit estimates for the third quarter, the company told investors to expect more slow sales growth for the rest of the year. The company is coping with a hard-drive shortage triggered by flooding in Thailand, and it faces more price competition with PC market leader Hewlett-Packard Co. (HPQ) Dell is increasingly opting to sidestep the low end of the market in favor of servers, services and networking equipment. “They walked away from unprofitable business,” Jayson Noland, an analyst at Robert W. Baird in San Francisco. He has an “outperform” rating on Dell. “It sounds like HP got really aggressive on pricing.” Dell shares were little changed in late trading yesterday after the earnings report. The stock, up 15 percent this year, had closed at $15.63 in New York. Third-quarter net income rose to $893 million, or 49 cents a share, from $822 million, or 42 cents, a year earlier. Excluding some costs, profit was 54 cents a share, topping the 47-cent estimate. ‘A Bit Lighter’ Slow consumer sales in the U.S. and Western Europe and weak orders from the federal government hurt demand last quarter, Dell Chief Financial Officer Brian Gladden said in an interview. “The revenue did come in a bit lighter than expected,” he said. The company is “pruning” its product line to focus on more profitable areas, he said. Dell’s sales of servers and networking gear rose 13 percent during the quarter, and services increased 10 percent, while revenue from desktop and laptop computers fell. Total revenue will increase 1 percent to 5 percent this fiscal year, which ends in January, Dell said. Growth is “trending” to the lower end of that range, the company said. Analysts had predicted sales growth of 2 percent. While the flooding may result in higher disk-drive costs, lower memory-chip prices are helping PC makers rein in expenses, said Chris Whitmore, an analyst at Deutsche Bank AG in San Francisco. “Memory pricing has just been fantastic for the box makers,” said Whitmore, who recommends buying Dell shares. Tighter Focus Under Chief Executive Officer Michael Dell, the company is winnowing its line of consumer products and focusing on small and medium-size businesses and government agencies, which account for more than half its sales. Dell now ranks behind Hewlett-Packard and Lenovo Group Ltd. in the PC industry, after leading the market as recently as 2006. The company plans to keep making acquisitions to expand in hardware and software for corporate and government data centers, its CEO said at a company conference last month. Dell also is increasing research-and-development spending as it integrates enterprise-computing companies it’s acquired, Michael Dell told analysts yesterday. R&D outlays on an annual basis are approaching $1 billion, he said. In the previous fiscal year, Dell spent $661 million. “This is a new Dell,” he said. “In a $3 trillion industry, there’s plenty of opportunity for us to grow.” Even so, Dell’s continued reliance on PCs has made it vulnerable to the Thailand floods. Rising waters have swamped industrial parks where manufacturers make about a quarter of the world’s disk drives. The flood has caused drive prices to increase by $10 to $25, Seagate Technology Plc CEO Steve Luczo said in a interview this month. Dell has loaded up on disk-drive inventory, helping mitigate the shortage.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today dell’s sales disappoint as it ‘prunes’ pcs Arab Today, arab today dell’s sales disappoint as it ‘prunes’ pcs

 



Arab Today, arab today
Arab Today, arab today Hats, scarves add beauty to women

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women
Arab Today, arab today Tourist guide reveals methods of tourist attractions

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Leader Omar Abdel Rahman dies in US prison

GMT 19:00 2017 Sunday ,19 February

Leader Omar Abdel Rahman dies in US prison
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Porsche reveals new 2018 Panamera

GMT 17:31 2017 Wednesday ,15 February

Porsche reveals new 2018 Panamera
Arab Today, arab today Actress Nadeen Al Rassi views art as her entity

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:05 2017 Friday ,17 February

Singer Diana Karzon will issue a new album soon

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 12:07 2017 Thursday ,16 February

Bite-mimicking malaria vaccine

GMT 09:03 2017 Thursday ,16 February

Tour guide praises women’s beaches

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 21:42 2017 Sunday ,12 February

Rania al-Ghazali designs candles of bubbles
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday