Dell Computers, who employ more than 6,000 people in Ireland, today warned that its fiscal fourth-quarter results would fall short of expectations as a result of slowdowns in the global economy and in demand for computer systems and services.
Dell joins a slew of computer companies that have warned about or reported lower earnings. Apple Computer Inc., Compaq Computer Corp., Gateway Inc. and Hewlett-Packard Co. have all said that the December quarter was a disappointment.
The new warning marks the fifth time that Dell has lowered its forecasts over the past year. In November, Dell said that it expected slower sales growth next fiscal year - the fourth time it had lowered its growth targets in 2000.
Dell said it now expects earnings for the fourth quarter ending January 26th of between 18 cents and 19 cents per share, down from its previous estimate of 26 cents. Analysts on average had been expecting fourth quarter earnings of 25 cents a share, according to First Call/Thomson Financial.
The company said that it expects fourth-quarter revenues to be up 25 to 27 percent from a year before to between $8.5 billion and $8.6 billion, below its previous estimate of $8.7 billion.
Dell said that it sees quarterly shipments rising more than 40 percent from a year ago. The company said that growth in servers, storage products, workstations and notebook computers was particularly strong.
It also said it plans to aggressively manage its cost structure during the next year.
The company is scheduled to release earnings on February 15th.
Dell's shares were down at $23 in pre-open trade from $25-5/8 at their Friday close.
Reuters