Computer maker Dell last night slashed its revenue forecast as an already weak outlook for technology spending this year worsened.
The company cut its full-year revenue growth estimate to a range of 1% to 5%, from 5-9% previously, citing uncertainty about whether government and company spending on technology could hold up in the face of flagging economic growth.
The company founded by Michael Dell has consistently beaten Wall Street expectations this year, a result of expanding its footprint in higher-margin businesses such as servers, storage and computer services.
Dell, which in May forecast strong government spending and a good back-to-school season, recorded sales of just under $15.7 billion in its second financial quarter to July. This was up 1% from a year earlier and marginally below analysts' forecasts. It added that sales this quarter were likely to stay flat from the last quarter.
Dell recorded net profit of about $890m, or 48 cents a share, in the quarter, up 63% from a year earlier. Excluding once-off items, it earned 54 cents a share, above analysts' expectations of 49 cents.
