Dell has issued a profits warning, citing a slowing worldwide market and aggressive pricing as contributory factors.
Second quarter fiscal 2007 revenue, which will be announced on August 17, is now expected to be approximately $14 billion with EPS of around 21 to 23 cents, which is much lower than originally expected.
"All of our initiatives are focused on providing the best value, experience and products to customers every day, which will maximise shareholder value over the long term," said Kevin Rollins, chief executive officer, Dell.
During Dell's annual meeting this month, Rollins told shareholders that the company's direct model continued to be successful and is increasing its revenues outside of the US.
"The direct model remains a powerful differentiator for our global business, providing a unique relationship with our customers and a clear cost advantage over our competitors," he said.
This latest profits warning is the second revisal Dell has made to its financial results this year. In May, Dell revised its first quarter GAAP earnings per share from 36 to 38 cents to a more modest 33 cents.
At the time Rollins said: "The competitive environment has been more intense than we had planned for or understood."
