Dell warns of profit shortfall


9 May 2006 – Round Rock (TX): Dell quarterly profit fell short of the company’s forecast after it cut prices to boost revenue growth, the company said in a preliminary earnings report yesterday.

The world’s largest computer maker said it expects to post Q1 EPS of about $0.33 compared to its February forecast of $0.36 – $0.38. Revenue hit the low end of its forecast at $14.2 billion. The company blamed the earnings miss on price cuts in the second half of the quarter that it believes will accelerate revenue growth in the future.