Dell sees 'softening' in IT demand
PC company declines to give specifics, but says this quarter is reflecting the same conservative IT spending witnessed in the second quarter.
Dell warned investors Tuesday that it expects to see "further softening in global end-user demand in the current quarter," a month after it reported a decrease in second-quarter profits.
Dell didn't give specific financial details, but said it expects to incur costs as it realigns its business. The company said it is "committed to working aggressively on cost initiatives" designed to generate improved growth, profitability, and cash flow.
Last month, Dell reported that second-quarter profits were down 17 percent year over year to $616 million. The company posted earnings of 31 cents per share, missing analysts' expectations of 36 cents per share. At the time, the company said conservative IT spending in the U.S. had spread to Western Europe and several countries in Asia.
Dell executives will address investors at a Bank of America conference Tuesday in San Francisco.
The announcement comes a day after Hewlett-Packard announced it will eliminate tens of thousands of jobs over the next three years, and as the stock market reeled from news of major troubles at U.S. financial institutions.