Unlike Demand for Dell Stock, Demand for Dell Products Has Stabilized
Things are starting to look up for Dell–well, as much as they can for a company so beaten into submission by the econalypse. The company said Monday that demand for its products appears to have stabilized and that it expects to report “a slight sequential revenue increase” for its second fiscal quarter, which ends July 31. “We continue to believe that customers are deferring IT purchases, and that we will see demand return to more typical levels at some point,” CFO Brian Gladden said in a statement.
Welcome news, right? Sadly for Dell (DELL), it was tempered by the revelation that the company’s gross margins will fall short of Wall Street expectations. And investors weren’t too happy to hear about that, sending Dell’s shares down more than three percent in late trading. The announcement comes a day before the company’s scheduled meeting with financial analysts and four days before its annual shareholders gathering.