Dell reports Q2 loss of $101 million

Dell reports Q2 loss of $101 million

Dell reported a loss in net income of $US101 million for its second fiscal quarter, due mainly to a heavy charge incurred for job reductions. However, the company managed to match the expectations of financial analysts, thanks in part to what it said were strong sales outside of the US.

Dell's net loss for the quarter, which ended August 3, amounts to a 117 per cent decline from the same quarter a year ago. Revenue dropped slightly less than 1 per cent to $7.6 billion, the company said in a statement.

The above income loss includes a pretax charge of $742 million for job reductions. Excluding that charge, income was $US433 million, down 28 per cent from the second quarter of 2000. Dell's earnings per share excluding the charge was $0.16, matching the consensus estimate of analysts polled by Thomson Financial/First Call.

Dell's product shipments outside of the US increased by 30 per cent during the quarter, the company said.

The computer maker increased shipments, notably in enterprise products, despite the economic downturn and picked up more than two points in overall market share, Chairman and Chief Executive Officer Michael Dell said in a statement. He termed the company's quarterly performance "solid" and "stable."

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