PC maker Dell has warned that it expects third-quarter revenue to be down between 2%and 5%on second-quarter levels because of the"uncertain economic environment".
Dell also blamed"competitive dynamics"and"soft consumer business"for its negative outlook for the third quarter,and said it expects a"challenging"user computer environment in the second half of the year.
The warnings came in second-quarter financial results in which Dell reported revenue of$14.5bn,down 8%on the same period a year ago and narrowly below the level that analysts had estimated.
Dell also saw its profits dive 33%in its first financial quarter of 2013 as consumer and large enterprise sales fell 12%and 3%respectively.Total sales in the first quarter were worth$14.4bn,compared with$15bn in the same quarter last year,a fall of 4%.
The second-quarter results caused Dell's shares to fall by 3.7%in after-hours trading to$11.88,after closing at$12.34,according to the BBC.
Despite the warnings,Dell also said it expects continued solid growth in its enterprise solutions,services and software divisions.
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Dell Enterprise Solutions and Services revenue grew 6%year-on-year to$4.9bn,which the company said represents 50%of margin and more than a third of revenue.The company also reported growth of 14%in its server and networking revenues.
"We're transforming our business,not for a quarter or a fiscal year,but to deliver differentiated customer value for the long term,"said Michael Dell,chairman and chief executive.
Brian Gladden,Dell chief financial officer,said:"Our performance in the second quarter provided another proof-point that our long-term strategy is right.
"We continued our progress in shifting the mix of our business to higher-margin enterprise solutions,led by solid growth in our server,networking,services,and Dell IP storage businesses.
"Growth in our PC business was challenging,as we saw a tough macro-economic and competitive environment,and continued to focus on higher-value solutions in this business,"Gladden said.
