Surprisingly, despite growing sales in all product categories and all business units, Dell is not able to get expected profits. If reports are to be believed, Dell Inc has forecasted its fiscal first-quarter result, which ended on February 3 which is more than 4 percent low. 

Earlier, it was estimated that Dell’s sales would be down 7 percent this quarter from the previous quarter, when it posted revenue of $16 billion. That translates into about $14.9 billion, below the average forecast for roughly $15.2 billion. 

All in all, Dell has earned $764 million, or 43 cents per share, for the three months that ended Feb. 3. That compares with income of $927 million, or 48 cents per share, a year earlier. 

It is found that expenses were on the rise in the quarter and were particularly high for R&D (Research and Development), spiking 40 percent to $236 million. 

Brian Gladden , Chief Financial Officer, Dell has stated in a recent interview that profit margins for the quarter are hurt by a combination of weakness in US public spending, discounting of the leftover inventory of its previous generation phones and the lingering impact of the Thailand flood on its product mix. 

Michael Dell, CEO at Dell states that the company is hoping to design a Windows 8 tablet for corporate customers after the Redmond giant Microsoft releases the software later this year.

Analysts believe, this may help Dell to improve its market repute. 

ITVoir NewsDesk