| Dell Q3 net income dips 5% to $727 mn | |
| Press Trust of India / New Delhi November 21, 2008, 13:30 IST | |
World'ssecond largest PC maker Dell today said its net income dipped by five per cent in the third quarter as customers and businesses reduced spending on technology due to economic downturn.
The net income for the quarter ended October 31 stood at $727 million compared to $766 million in same period last year, Dell said in a statement today.
The revenues also declined by 3 per cent to $15,162 million during the quarter from $15,646 million in the year-ago period.
Dell Chairman and CEO Michael Dell said "the company would focus on cutting costs in the future" and there would be costs associated with continued headcount reduction and other business realignments.
The company said it ended the quarter with 2,200 fewer jobs than in the second quarter, and that its headcount decreased 9 per cent from the year-ago period.
While the company did not offer specific guidance on sales and profit for the coming quarter, it did say that it believes global demand will continue to be soft.
"Dell believes that global IT end-user demand will continue to be challenging. Against this backdrop, the company will continue to focus on improving competitiveness, lowering costs and improving its mix of products and services to optimise liquidity, profitability and growth," Dell President (Asia Pacific and Japan Steve Felice) said.
However, he said that the impact of the company's cost cutting will be minimum in China and India.
"We will continue to invest in China and India in areas such as research and development and call centre activities."
"Despite the downturn, India and Chinamarket would continue to grow for Dell,"Felice said.
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