Dell Computer expects a loss in 2nd quarter
Article Abstract:
Dell Computer expects to report its first quarterly loss at the Aug 1 close of its second quarter 1993. The weakening of the market in Europe combined with control problems contributes to losses and a $75 to $85 million charge. Dell's notebook computer business problems and a malfunctioning market forecasting system will be covered by the charge. Predictions for the drop in earnings are now at $1.65 to $1.85 per share, triple the original predictions. Stock in Dell fell 30 percent on Jul 14, 1993, in reaction to reports of the expected loss. Industry analysts expect demand for microcomputers to decrease by the end of 1993. The industry slump has already resulted in Apple lay-offs and filing of bankruptcy by CompuAdd Computer Corp and Everex Systems Inc.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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Dell Computer's net soared in quarter despite a round of steep price cuts
Article Abstract:
Dell Computer Corp reports its best quarterly financial results since the firm became a public company in 1988. Sales rose 129 percent in the 2nd qtr ending Aug 2, 1992. Net income rose a sharp 77 percent despite the price cuts of up to one third. Dell's stock closed at $25.375 a share, up $2.125 on the New York Stock Exchange. The computer industry price reductions and competitive price wars are dividing the market in two. Many smaller mail-order companies are losing business and having trouble staying in business. The successful companies, such as Dell, report active growth and sales. Compaq and Gateway 200 are two other vendors that have benefited from the price war, but Compaq is having trouble with product availability.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1992
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Comment about this article or add new information about this topic:
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