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Dell profit dropped 51%

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z0mb13

Lifer
Dell's Reports 51% Drop in Profit
And Says SEC Is Probing Accounting

A WALL STREET JOURNAL ONLINE NEWS ROUNDUP
August 17, 2006 5:37 p.m.

Dell Inc.'s profit dropped 51%, hurt by deep discounting and lackluster demand for personal computers. The company also said the SEC is investigating its revenue recognition practices.

The No. 1 personal computer maker posted net income of $502 million, or 22 cents a share, compared with $1.02 billion, or 41 cents a share, in the same quarter last year. Revenue rose 5% to $14.09 billion from $13.43 billion in the year earlier period.

Dell CEO Kevin Rollins comments2 on the SEC's probe and talks about the company's latest quarterly results, its outlook and the recent battery recall.Dell blamed its profit problems on aggressive price cutting and a slower market. "While we are disappointed with the results for the quarter, we are taking the necessary actions to correct missteps and improve our results for the long term," said Kevin Rollins, Dell chief executive officer, in a press release
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This and the battery recall = bad news
 
Ouchee. They had a decent rally this week too. After hour trading is probably going to slaughter them and there will be some major blood letting tomorrow.

 
i would have figured profit would be going up right now, with all the college freshmen getting new computers and whatnot (though i chose the Macbook instead.. bwahah)
 
Originally posted by: OREOSpeedwagon
i would have figured profit would be going up right now, with all the college freshmen getting new computers and whatnot (though i chose the Macbook instead.. bwahah)
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this is for last quarter.
 
The company I work for recently dropped Dell and went to HP because of various problems Dell wasn't willing to correct with their service, supply and quality.,
 
computer makers as a whole can't wait for vista to come out.

dell seems to have gone to sh!t since kevin rollins took over.


their JIT production model is great for high margin systems because the customization reaches out to more customers and allows dell to sell upgrades easier. but it's horrible for people wanting $500 boxes because it is more complex manufacturing and dell chassis have to cost more.

plus dell doesn't spend crap for r&d, making their boxes little different from anyone else's. why buy dell? support? no, that's gone to sh!t. reliability? nope, same as everyone else's.
 
glad i sold all of their stocks when they were still up in the 30s
may be good time to grab their stocks tomorrow
buy low sell high
 
Originally posted by: trmiv
The company I worked for recently dropped Dell and went to HP because of various problems Dell wasn't willing to correct with their service, supply and quality.,
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Yep, HP profits went up this quarter.
 
Their price scheme is annoying... a computer with the same configuration sells for $499, $599, $449, $649, $700, ... depending on the week, home/business/education, and the current promotional discounts. It's like they say "well, we didn't sell enough at $499 with a $50 coupon, so let's sell it for $999 with a $500 coupon and a $50 rebate."

I've been kicking myself for a while now for not grabbing the desktop deal a couple months ago with a 19inch digital LCD. Sounds like they won't have great deals like that for a while now.
 
Originally posted by: Kelvrick
Originally posted by: trmiv
The company I worked for recently dropped Dell and went to HP because of various problems Dell wasn't willing to correct with their service, supply and quality.,
Click to expand...

Yep, HP profits went up this quarter.
Click to expand...

and they'll go up another notch when I buy this HP DV2000T 🙂
 
Originally posted by: DrPizza
Their price scheme is annoying... a computer with the same configuration sells for $499, $599, $449, $649, $700, ... depending on the week, home/business/education, and the current promotional discounts. It's like they say "well, we didn't sell enough at $499 with a $50 coupon, so let's sell it for $999 with a $500 coupon and a $50 rebate."

I've been kicking myself for a while now for not grabbing the desktop deal a couple months ago with a 19inch digital LCD. Sounds like they won't have great deals like that for a while now.
Click to expand...

I got in on that deal.. the one with the dual core right? 😀😀
total price was 600 ish, sold the 19 inch lcd for 200 so I got the PC for $400
 
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