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Dell's Earning Miss Expectations
Written by Philip Buonpastore
Friday, 29 February 2008
ROUND ROCK, TX - Dell Computer has reported fiscal
fourth-quarter results below analyst's expectations. Dell reported
profit for fiscal Q4 of $679 million, or 31cents a share, 14% below the
36 cents analysts had predicted. Sales for the quarter were $16
billion, below the $16.27 billion expected, but up from $14.5 billion
year-over-year.
The computer maker blamed turnaround costs, "conservative" consumer
spending, and the effort to reverse a sales and market-share decline
that led to last year's resignation of former CEO Kevin Rollins.
Dell released a statement saying that it expects to "incur costs as it
realigns its business to improve growth and profitability, adversely
impacting the company's near-term performance."
The company will reportedly increase customer service, begin selling
its products through retail outlets, end direct-to-consumer sales, and
reportedly lay off 10% of its workforce, or almost 9,000 jobs.
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