And Dell’s reports confirmed the poor state of the industry

The financial results of the second-largest PC maker in the world – Dell, for the second fiscal quarter confirmed what the reports showed, and the other giants of the technology sector – the computer industry remains in a difficult position.
Sales company based in Texas decreased by 22% yoy during the quarter from May to July to 12.8 billion dollars.
Reported annual net profit by 23% to 472 million, or 24 cents a share, from profit of 616 million, or 31 cents a share for the three months to July 31, 2008 results, however, proved to be better of analysts’ forecasts and the shares of Dell rose nearly 7 percent.
Market analysts had expected a smaller profit of 23 cents per share on revenue between 12,6 billion dollars. Dell accounts for the previous quarter reveals that decreased earnings per share by 4 cents due to costs of restructuring the company, cited by AP.
To optimize their expenditure, management of the company reduces the number of employees and the manner in which manufactured and sold computers. Over 9 thousand employees were made redundant by the end of January and thus reduces the staff of Dell to 78 900 people.
Sales of PCs to households increased by 17% over the past 12 months thanks to major concessions and increased consumer interest in laptops. Purchases by businesses, however, decreased by 32% yoy to 3,3 billion dollars.
For precisely this reason, Dell’s financial results are worse than the market leader and chief rival Hewlett-Packard. About 80 percent of Dell’s business comes from sales of PCs to companies, government agencies and other institutions.
According to the founder of the company and its CEO Michael Dell revenue in the second half of the year will increase from the first half, in the event that the upward trend in demand for computers observed in the present, is preserved.
He warned that Dell’s profits will remain under pressure from aggressive pricing and increased costs for individual components such as liquid crystal screens. According to him the cost of computer equipment companies may remain weak until 2010
Shares of Dell closed Tuesday’s session with the price increase of 6.7 percent and more expensive by 3.1 percent to 16.13 dollars per share in the hours electronic trading on the exchange Nasdaq. Dell’s market capitalization has increased by nearly 53 percent to 30.6 billion dollars since the beginning of this year.

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Finance