Dell has revealed its latest financial numbers for the quarter that ended on June 30. Revenue for the quarter came in at $15.66 billion, which is only a slight increase compared to the $15.5 billion in revenue Dell brought in at the same time period a year ago. However, net income for Dell was a huge improvement as it recorded $890 million for the quarter, well above the $545 million in net income it brought in at the same period a year ago. Dell said that a lot of its growth in the quarter was due to its enterprise business as sales of servers and storage products surged up.
So everything is good at Dell, right? Not so fast. The company also announced that it was cutting its revenue forecast for its full fiscal year. Dell now expects revenue growth of between 1 to 5 percent for the fiscal year versus its previous predictions of between 5 to 9 percent. Dell said it was cutting its forecast due to a "more uncertain demand environment". That was enough to send Dell's stock prick down in after hours trading today.
There is definitely a fear that the PC industry as a whole is slowing down and Dell is still primarily a PC company. Its efforts to break into the smartphone market haven't been successful and more recently the company has tried to enter the tablet market with the Streak. Dell recently launched a 10 inch screen version of the Streak but only put the tablet on sale in China.