Dell's earnings fall short of estimates

NEW YORK - DELL'S inability to capture sales in the booming notebook computer market was reflected in its fourth-quarter results showing a sharp decline in income and an unusual drop in revenue.

Dell said on Thursday that its net income fell by a third to US$673 million (S$1.03 billion), or 30 US cents a share, in its fourth quarter from US$1.01 billion, or 43 US cents a share a year earlier.

Revenue fell 5.1 per cent to US$14.4 billion from US$15.18 billion. The last time Dell saw a decline in revenue was in 2001, in the recession that followed the technology boom.

Wall Street analysts had expected Dell to report a net income of 29 US cents a share for the quarter ended Feb 2 even after it warned in late January that earnings would be lower than analysts had expected.

'We are disappointed with the results, but what matters is our future plan of action,' Dell chairman and chief executive Michael Dell said. 'We are systematically moving to increase efficiencies, improve execution and transform the company.'

Dell said its results were unaudited, preliminary and subject to restatement.

It has been trying to straighten out its financial reports as it is being probed by the Securities and Exchange Commission (SEC) over an undisclosed accounting issue.

Dell did not provide year-ago comparisons or include balance sheet information in the results.

The company said its internal investigations into the accounting problems have reduced income by US$89 million, or three US cents a share.

Because Dell has failed to file audited results to the SEC for the last three quarters, Nasdaq has threatened to delist the company. But Dell said Nasdaq has given the company until May 4 to submit information before it takes any action.

NEW YORK TIMES