International
Dell Computer issues warning on first quarter earnings
By Finfacts Team
May 8, 2006, 21:34

Dell Computer warned on Monday that its fiscal first-quarter earnings would fall short of its forecasts, as it contends with increased competition and aggressive discounting.

Dell headquarters Round Rock Texas - Much of the industry's growth is coming from strong demand in China and India.

Dell, the world's top PC maker and one of Ireland's biggest employers said it expects earnings of 33 cents a share for the quarter, compared with its previous forecast of 36 cents to 38 cents a share.

Revenue in the quarter is expected to be about $14.2 billion, the lower end of its previous estimate of $14.2 billion to $14.6 billion.

In a statement, Dell said the earnings shortfall was "driven primarily by pricing decisions in the second half of the quarter that the company expects will accelerate revenue growth in the future."

Dell will announce financial results for fiscal 2007 first quarter on May 18th.

Dell's earnings update was issued after the close of trading. Its shares ended regular trading up 75 cents, or 2.9%, to $26.43 on the Nasdaq Stock Exchange.