Dude, Nobody's Buying Dell

Wall Street expected lackluster results from Dell, and the Round Rock, Texas-based computer giant delivered them.

After market close Thursday, Dell reported its lowest fourth-quarter profit since 2002. Net income was $351 million, or 18 cents a share, down 48 percent from the $679 million, or 31 cents a share, reported in the same period last year. Worse, sales fell to $13.4 billion–a 16 percent drop from the $16 billion the company reported last year.

Ugly. Like its rivals, Dell (DELL) has been hit hard by the world-wide economic slowdown and declines in consumer spending.

“Customers know they need information technology, and we think we’re best able to help them use IT to improve productivity,” said Michael Dell, chairman and chief executive officer. “But a lot of IT spending is being deferred until there’s better economic visibility.”

Interestingly, Dell said it has increased its cost-reduction goal to $4 billion from $3 billion, but it didn’t say how it plans to hit that number. Could there be further job cuts in the offing?