NEW YORK: Dell Computer Corp, chief financial officer Jim Schneider on
Tuesday said the computer maker stands by its forecasts for sales growth in the
current quarter despite a slump in the technology sector.
Last month, the company said it sees second-quarter revenue of $8.2 billion,
up 8 per cent from a year earlier. Analysts on average also expect the company
to post second-quarter sales of $8.2 billion.
Schneider, speaking at a Bear Stearns technology conference, said he expects
second-quarter sales will grow both in comparison with the previous quarter and
the same period a year ago despite the business climate. "I think the
econonic environment is still pretty rough," he said.
Dell shares were up 37 cents, or more than one per cent, at $26.60 in midday
trading on the Nasdag stock market. Technology investors had been concerned for
Dell's outlook after Intel Corp., the world's largest semiconductor maker, last
week pared its revenue guidance, citing lower-than-expected demand in Europe.
Intel's revised outlook was seen as dimming hopes for a recovery in the
beleaguered technology industry any time soon, but Schneider offered reassurance
about the effect on Dell, which uses Intel's chips in its computers. "I
don't think what they've (Intel) said has had an impact on what we previously
said," Schneider said, referring to the guidance given by Dell during its
first-quarter earnings release in May.
At the time, the company also gave a second-quarter earnings per share figure
of 18 cents. Dell executives told Bear Stearns analyst Andrew Neff that despite
concerns about Intel and weakness in Europe, that region is a smaller part of
Dell's revenue
(C) Reuters Limited.