Dell reaffirms Q3 financial outlook

Dell reaffirms Q3 financial outlook

Dell Computer reaffirmed its third-quarter financial guidance in a conference call broadcast over the Web Thursday morning, reiterating its August earnings projection of $US0.15 to $0.16 per share and its revenue estimate of $7.2 billion to $7.6 billion.

Dell's business was not seriously affected by the halt of US air transportation after the September 11 terrorist attacks, according to a company statement released before the conference call with analysts. Dell attributed the unimpeded business to relationships with key vendors and aggressive supply-chain management.

Dell reduced inventory in dollar terms by one-third during the quarter, maintaining a four-day supply of computer components. Overall unit shipments increased 19 per cent.

Dell's third quarter ends November 2. The company plans to announce third quarter results November 15 and provide fourth-quarter guidance. Dell reported a loss of $101 million for its second quarter, on revenue of $7.6 billion. The loss could be attributed to a $742 million charge against earnings for job reductions. Without the charge, Dell earned $433 million.

Analysts polled by Thomson Financial/First Call estimate Dell will report $7.27 billion in third-quarter revenue with earnings of $0.15 per share.

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