Wednesday, August 17, 2011

Dell releases earnings up, but lowers its revenue estimates

The second global computer manufacturer, Dell, published Tuesday, August 16, profit up 63% to $ 840 million (584.8 million euros), above expectations for the second quarter of fiscal year shifted 2011/2012. Second-quarter sales activities related to corporate Dell was up 1% to $ 4.6 billion (3.2 billion), driven by "strong demand for servers and services ".

The consumer market benefits from sales of laptops and desktops, up 4% to $ 2.9 billion (2 billion). "We continue to see positive momentum in high growth sectors of our business, which directly reflects the implementation" of the strategy of the company, noted for its part, the founding CEO, Michael Dell.

The group, however, lowered its growth forecast of sales for the fiscal year to a range between 1 and 5% against 5-9% previously, "because of strategic decisions to redirect resources" group towards products with higher added value and an "environment more uncertain demand," Dell noted in a statement.

The company also provides that the proceeds will be "stable" for the current quarter. Dell wants to focus in particular on the "next-generation IT solutions and intelligent management of data" or "services, security and cloud computing," said the chief financial officer, Brian Gladden, in a conference call with analysts.

Mixed reaction to these forecasts, the stock lost 7.85% to 14.56 dollars (10.14 euros), in electronic trading after the close of the New York Stock Exchange.

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