ROUND ROCK, Texas: It seems that technology spending has been affected by the stuttering economy, along with pretty much everything else.
The latest victim is IT giant Dell Computer, which last week posted a 17% slide in second quarter net income. The worse-than-expected figures sent the company's share price plummeting by ten percent.
Net profit during the period was $616 million (€418m; £337m), down from $746m in the year-ago period. Sales, however, rose to $16.4 billion, up from $14.8bn.
Operating expenses fell to 12.2% of sales - the lowest level in eighteen months – indicating that some of Dell's cost-cutting and restructuring has had a positive effect.
Data sourced from Financial Times; additional content by WARC staff