Leading computer manufacturer Dell has announced its Q1 result, reporting a net income of $535 million, which is a decline of 33 percent from the same quarter last year. Dell's revenue was $14.4 billion, a 4 percent drop from the last year's same quarter revenue.
The company's desktop PC revenue for the first quarter declined by six percent in the last quarter while consumer sales dropped by 12 percent.
Explaining the reasons for the failure in this quarter, Dell Chief Financial Officer Brian Gladden blamed the current uncertain global economic climate. "Clearly we are seeing a bit more challenging demand environment," Gladden said in an interview to Reuters. "Europe, in general, was down for us."
Additionally, supply chain disruptions caused by last year's Thailand flood along with consumers' preferences for tablets than PCs, are also major reasons for the disappointing Q1 result, states the leading PC maker.
Dell Inc, which earlier reported that it would shift its attention from consumer market to enterprise, expects that the increased demand from U.S. federal businesses will improve the company's present situation.
Meanwhile, the company forecasts that its second quarter revenue will be in line with historical seasonal trends and be up 2-4 percent from first-quarter levels and will become $15 billion from $14.7 billion in this fiscal quarter. The outlook is disappointing and well short of the $15.4 billion estimation of the Wall Street.
"It clearly is disappointing," Shaw Wu, an analyst with Sterne Agee, said to Reuters. "The expectations heading into the quarter were not even that high."
The shares of Dell were trading at $13.20 after hours, down from a $15.08 close on Nasdaq.
