Arab Today, arab today dell’s sales disappoint as it ‘prunes’ pcs
Last Updated : GMT 09:35:39
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.

arabstoday
arabstoday

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

 



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 Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq's Barzani isolated by his drive

GMT 04:36 2017 Tuesday ,24 October

Iraq's Barzani isolated by his drive
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today EU targets German carmakers

GMT 05:41 2017 Tuesday ,24 October

EU targets German carmakers
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today Sherine Reda frustrated of latest terrorist attacks

GMT 09:03 2017 Monday ,23 October

Sherine Reda frustrated of latest terrorist attacks
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:12 2017 Saturday ,21 October

Donia Abdel Aziz aspires to return to cinema

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 08:06 2017 Tuesday ,24 October

Second Palestinian mobile provider enters Gaza

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
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