Dell Profits Decline by 18% as Expenses Soar

Due to disk drives supply constraints and low demand from public sector customers, Dell's fourth quarter earnings went down by 18 per cent. Another reason for this downfall is believed to be the company's increasing operating expenses.

On Tuesday, the Round Rock based tech giant stated that in the fiscal quarter that ended on 3rd February, the revenue rose by only 2 per cent. The company also predicted that revenue in the present quarter will be declining slightly reports RTTNews.

According to Adwaita Menon, an analyst with IDC, market research group, "Economic and unpredictable reasons drove down the personal computer market in the fourth quarter", reports LiveMint.

Dell's share prices fell by 5.1 per cent after their first quarter sales prediction as the demand for personal computers were going down from governments as well as consumers. Revenue during the period that will end on April will also decrease by 7 per cent to $24.9 billion stated the company.

The chief financial officer of Dell, Brian Gladden blamed Thailand flood of last year for the low performance of the company during that quarter. Even though the floods are over but it seems the tech companies will take some time to get over their financial damages caused by the calamity.