Dell Second-Quarter Profit Falls Short

Dell (DELL) posted stronger-than-expected top-line growth in the fiscal second quarter ended Aug. 1, but it had lower-than-expected profits as margins missed Street expectations, and the stock is trading lower.

For the quarter, Dell posted revenue of $16.4 billion, ahead of the Street at $15.95 billion. But profits of 31 cents a share were a nickel shy of expectations. The company said profits were reduced by a about a penny a share from amortization of purchased intangibles, and another penny by business realignment costs. Dell said gross margins were “adversely affected by actions to drive growth in strategic areas like Global Consumer and EMEA, as well as an increase in deferred revenue from the sale of successful service offerings in EMEA, which will be recognized in subsequent periods.”

Gross margin in the quarter was 17.2 percent, down from 18.4 percent in the May quarter, and 20 percent a year ago.

Read the rest of this post.


Must-Reads from other Websites

Panos Mourdoukoutas

Why Apple Should Buy China’s Xiaomi

Paul Graham

What I Didn’t Say

Benjamin Bratton

We Need to Talk About TED

Mat Honan

I, Glasshole: My Year With Google Glass

Chris Ware

All Together Now

Corey S. Powell and Laurie Gwen Shapiro

The Sculpture on the Moon

About Voices

Along with original content and posts from across the Dow Jones network, this section of AllThingsD includes Must-Reads From Other Websites — pieces we’ve read, discussions we’ve followed, stuff we like. Six posts from external sites are included here each weekday, but we only run the headlines. We link to the original sites for the rest. These posts are explicitly labeled, so it’s clear that the content comes from other websites, and for clarity’s sake, all outside posts run against a pink background.

We also solicit original full-length posts and accept some unsolicited submissions.

Read more »