Dell posts losses of 63 per cent

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Dell’s net income has fallen by 63 per cent this quarter, compared to the same time last year.

Net income was $290 million compared to $784 million in the first quarter of 2008.

Net revenues also saw a 23 per cent slump down to $12.3 billion, again compared to the same time last year. The biggest losses were in desktop PC revenues, down from $4,849 billion in May 2008 to $3,163 billion.

Dell has followed the fate of many large tech companies unable to sail through this recession unscathed, including HP, which also posted losses last week along with further job cuts.

In a statement from the company, Dell said it very much focused on the positive savings it has made rather than the drop in profits.

Michael Dell, chief executive of the company, said: “We’re continuing to transform the company on the cost side and delivering strong cash flow. Re-establishing cost leadership and having flexibility to invest in our business will position us well as IT spending improves.”

He admitted that future demand in the market was not yet definite but believes the company’s virtualisation products and managed services will put them in good stead if the tide turns.

IT PRO requested a comment on the losses themselves but Dell had not returned this at time of publication.

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