Wednesday, November 16, 2011

Dell revenue flat, warns on full-yr outlook

NEW YORK (Nov 15):'' Dell Inc's quarterly revenue just missed Wall Street estimates, and the world's No. 3 personal computer maker warned that full-year revenue could be hurt by an industrywide shortage of hard drives.

The uncertainties surrounding the economy and the hard drive shortage due to the flooding in Thailand means that Dell's fiscal 2012 full-year revenue is tracking at the lower end of its growth forecast of 1 to 5 percent, the company said.

Severe flooding in Thailand, which produces one-quarter of the world's hard drives, has sparked a rise in prices and stranded many factories.

Analysts on average had projected a 1.6 percent climb in Dell's fiscal 2012 revenue to almost $62.5 billion.

Dell said revenue in its fiscal third quarter was essentially flat at $15.36 billion, but slightly lower than the average analyst estimate of $15.65 billion according to Thomson Reuters I/B/E/S.

Net earnings for the quarter rose to $893 million, or 49 cents a share, from $822 million, or 42 cents a share, in the year-ago period.

Excluding items, Dell earned 54 cents a share, better than the average analyst estimate of 47 cents according to Thomson Reuters I/B/E/S.

Dell's large enterprise business increased sales 8 percent on good demand for desktop PCs, servers and networking equipment as corporations continued to upgrade aging hardware. Sales to consumers fell 6 percent.

Shares of Dell slid 2 percent to $15.32 in extended trade, after closing at $15.63 on Nasdaq. - Reuters

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