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Vendor expects revenue increase during second quarter

Dell: Demand has stabilised

Dell has said that year-on-year demand for its products has stabilised and anticipates that its revenue will increase towards the end of this month.

However, the vendor has also forecast that its profit margins will shrink slightly as a result of higher component costs, a competitive environment and decline business demand.

Dell’s CFO Brian Gladden told industry analysts that while demand appears to have stabilised, the results vary between segments and geographic location. He added that the company is committed to improving its liquidity, profits and growth and to reduce costs by over four billion dollars by the end of 2011.

“We continue to believe that customers are deferring IT purchases, and that we will see demand return to more typical levels at some point,” said Gladden. “In the meantime, we continue focusing our energy and resources on the operating initiatives that will improve the company, and position us for future success.

“One of our strengths is understanding customer needs and meeting them with great technology and services. To do that best we’re investing to expand on existing capabilities and extend into new areas, while smartly and efficiently managing our costs and assets.”

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