Dell, the world's largest retailer of personal computers, has announced record earnings for its fiscal 2006 second quarter. Despite this, shares in Dell have dropped by nearly 8% due to a reduction in forecast growth for the third quarter of 2006.
During the second fiscal quarter of 2006 Dell shipped a record 9.1 million computer systems worldwide, and achieved a revenue of over $2 billion from software and peripheral products. Earnings for the second quarter were $1.02 billion, or 41 cents per share. This is a 32 percent increase compared to the same period in 2005. Total revenue for the quarter was $13.4 billion.
Despite the new records, Dells forecast for the third fiscal quarter has reduced to around the $14 billion mark. This is below previous forecasts which had been around the $14.5 billion mark, and is due to reduced government demand and a slow down in the consumer business market. Dell shares dropped by around 8% as a result of this reduced revenue prediction.
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