Dell Reports Drop in 4Q Earnings, Revenue

Dell Inc., Thursday said fourth-quarter profits dropped 33 percent due to weak sales of its laptops and notebooks. The computer maker reported a 4 per cent drop in revenue which stood at $14.4 billion – down from $15.2 billion in the same period last year. One year back the company had posted earnings of 43 cents a share which now are 30 percent lower at 30 cents a share.

Dell said its net income was $673 million in the quarter ended Feb. 2, compared to $1.01 billion a year earlier.

According to a Thomson Financial survey, analysts had anticipated revenue of $14.9 billion and 29 cents earnings per share but Chairman and Chief Executive Michael Dell was visibly disappointed as he said, "We are disappointed with the company's results, but what matters is our future plan of action. We are systematically moving to increase efficiencies, improve execution and transform the company.”

Dell also stated that the Company will consider the consumers’ needs and work accordingly to improve their experience and have better growth and effectiveness for the long-term.

With the past couple of months bringing significant transformations at Dell, the Company declined to provide any additional revenue or income forecasts. Amidst persistent problems with its own internal and accounting practices, Dell said that it may have to reaffirm its earnings at another time.

Michael Dell, in January replaced his hand picked successor, Kevin Rollins as the company watched its loss of market share to main rival Hewlett-Packard Co.

The company said it was making efforts to improve by streamlining operations, cutting short the product development cycles and considering new approaches for manufacturing and distribution.

Dell is also reported to have been luring top corporate executives from Motorola Inc. and Solectron Corp. in recent weeks to strengthen its executive team.

Dell shares closed up 16 cents to $23.01 Thursday on the Nasdaq Stock Market, then fell 36 cents to $22.65 in after-hours trading.