Dell revenue falls short of analyst estimates

Dell reported revenue of nearly US$16 billion for the fourth quarter of 2008, up 10 percent from a year ago, but fell short of analyst estimates.
The company on Thursday reported revenue of $15.989 billion, short of the $16.265 billion estimate from analysts polled by Thomson Financial. Dell reported net income of $679 million, falling 6 percent year-over-year and short of analyst estimates of $810 million for the quarter that ended Feb. 1. Earnings per share were $0.31, down 3 percent from the same quarter of the previous year.

Earnings were affected by $83 million in charges taken by Dell related to the acquisitions of EqualLogic and Everdream. The company also took a $54 million charge related to severance costs and facility closures.

The company's sales grew globally. Dell reported a 17 percent increase in sales in the U.S., which accounted for 49 percent of the company's revenue, and a 36 percent rise in combined sales in Brazil, Russia, India and China.

Over the past eight months Dell reduced its headcount by 3,200, as it continues to address costs and productivity, the company said. The earnings growth puts Dell in a stronger position to address those issues, CEO and Chairman Michael Dell said in a statement.