Dell is expecting IT spending to cool down this summer.
While the Round Rock, Texas, PC vendor posted solid financial numbers May
29, it warned that the slowing U.S. economy will continue to force enterprises
and small businesses to curb their IT spending throughout the 2008 summer.
For the company’s 2009 fiscal first quarter, which ended May 2, Dell
reported net income of $784 million, or 38 cents a share, compared with the
$756 million, or 34 cents a share, income the company posted a year ago. Dell’s
revenue for the quarter hit $16.1 billion, an increase of 9 percent. Wall
Street analysts had been looking for revenues of $15.7 billion and a net income
of 34 cents a share.
While Dell beat Wall Street expectations, the company did issue a warning in
its quarterly report that IT spending, especially in the United
States, is likely to continue to slow down
through the next three to four months.
