Dell expects gross margin to fall in second quarter

Source: Internet
Author: User
Keywords Fiscal season decline revenue Dell gross margin
Beijing time July 14 Evening news, according to foreign media reports, Dell Monday forecast, the company's second-quarter gross margin will appear to decline. Dell has unveiled vague business expectations to investors, which will meet with financial analysts at its headquarters in Tuesday. Overall, computer demand appears to have stabilized, Dell said. The company expects revenue for the second quarter ended July 31 to be slightly higher than the $12.3 billion trillion in the first quarter. Meanwhile, Dell warned that gross margins in the second quarter could fall slightly.  Dell's revenue for the second quarter was $16.4 billion trillion last year.  Dell CFO Blaine Graden Brian Gladden said the company still believes customers are postponing buying IT products and expects demand to return to more normal levels sometime in the future. The global recession has had a significant impact on Dell, which has a large share of its market in the direction of rivals such as Acer and HP.  Dell relies more heavily on commercial computer sales than its rivals, and companies are less willing to buy new computers than consumers. Like many PC makers, Dell is also waiting for Microsoft to sell its new Windows 7 operating system in October.  The new product is expected to boost computer sales. Dell said the likely decline in the second quarter was due to rising computer-component costs, a competitive pricing environment and an unspeakable optimism in the product and business sector.  More of Dell's profits come from commercial computers, so slowing corporate customer sales could hit Dell's profits. Analysts polled by Thomson Reuters, on average, expect Dell's second-quarter revenue to be $12.5 billion trillion, the first time in a year to achieve continuous revenue growth. Dell's revenue for the second quarter was $16.4 billion trillion last year. (Yi Fei)
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