Shares in Dell have taken a battering; falling to theirlowest level in years after the vendor reported it too was seeing softeningdemand in the current quarter.
The news comes at a troubling time for technology stocks,which slipped this week in response to the growing banking crisis in America, andnews that Hewlett-Packard is to cull over 20,000 staff after integrating EDS.
Speaking at a Bank of America conference in the US,Dell CFO Mike Gladden said: “We saw a very weak August, weaker than usual. Wehaven't seen it snap back.”
Dell does not make financial predictions on principle, andstill expects to grow ahead of the market this quarter. However, in a statementit said it expected to “incur costs” as it realigns itsbusiness to improve competitiveness, reduce headcount and invest ininfrastructure and acquisitions.
Dell’s most recent quarterly figures fromlast month showed a 17% year-on-year slide in profits to $616m.
Dell’s woes echoed yesterday’s trading statement from IngramMicro in which the distributor claimed that after the slack summer months, ithad seen no sign of the traditional September recovery.