Dell reports Q2 loss of $US101 million

Dell Computer Corp. reported a loss in net income of US$101 million for its second fiscal quarter, due mainly to a heavy charge incurred for job reductions. However, the company managed to match the expectations of financial analysts, thanks in part to what it said were strong sales outside of the U.S.

Dell's net loss for the quarter, which ended Aug. 3, amounts to a 117 percent decline from the same quarter a year ago. Revenue dropped slightly less than 1 percent to $7.6 billion, the company said in a statement.

The above income loss includes a pretax charge of $742 million for job reductions. Excluding that charge, income was US$433 million, down 28 percent from the second quarter of 2000. Dell's earnings per share excluding the charge was $0.16, matching the consensus estimate of analysts polled by Thomson Financial/First Call.

Dell's product shipments outside of the U.S. increased by 30 percent during the quarter, the company said.

The Round Rock, Texas computer maker increased shipments, notably in enterprise products, despite the economic downturn and picked up more than two points in overall market share, Chairman and Chief Executive Officer Michael Dell said in a statement. He termed the company's quarterly performance "solid" and "stable."

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