Dell's Net Profit Drops 54%

Nov. 20, 2009
However CEO says he sees signs that computer industry is emerging from its slump.

Shares in Dell fell sharply on Nov. 20 after the company said quarterly net profit declined 54% and revenue dropped 15%. Dell shares were trading 6.05% lower in after-hours electronic trading at $14.91.

The Texas-based company said net profit declined to $337 million in the third quarter from $727 million a year ago.

Revenue dipped to $12.9 billion from $15.2 billion a year ago.

Dell chairman and chief executive Michael Dell said there were signs that the computer industry was emerging from its slump. "We are seeing improvement in overall underlying IT demand that is continuing into the fourth quarter," Dell said. "The same is true with momentum in Dell's business."

"The launch of Windows 7 is being very well received by (small and medium businesses) and consumers, and we'll see the benefits of that more fully in our fiscal fourth quarter," he said.

Microsoft launched the new computer operating system last month.

Copyright Agence France-Presse, 2009

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