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Thinkpad (AXcess News) Houston, TX - Shares of Dell Computer Co. (Nasdaq: DELL) were down over 6 percent Tuesday morning following the computer maker's disappointing forecast for its first-quarter.
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Microsoft Dell Reported after the market close on Monday that it would earn 33 cents per share in the first quarter, which includes 3 cents per share in stock option expenses, while its previous forecast put earnings figures at between 36 to 38 cents per share.
Katz runs the company with 22 paid employees and 300 volunteers who give technical support to new users and are compensated with free memberships (remember those days at AOL ). He rents space in two AT&T data centers, one in Manhattan, another inSecaucus, N.J., with $700, 000 worth of computer equipment, end servers from Dell Computer and five IBM Unix servers. The $2 million annual payroll is his biggest expense.
Laptop Computers Dell said its first-quarter revenue would be on the low side of $14.2 billion, which the Round Rock, Texas-based computer maker had forecast to be $14.2 to $14.6 billion.
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Laptop Computer Analysts following Dell had estimated it would earn 38 cents per share on $14.5 billion in sales.
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Desktop Computer Dell's shares had dropped 7.3 percent in instanet trading before the open Tuesday morning, hitting a low this morning of $24.50 but managed to recover slightly to $24.68 in late morning NASDAQ National Market trade.
Notebooks Dell's chief executive Kevin Rollins said pricing decisions in the second-half of the first-quarter primarily attributed to the company's lower forecast results. Rollins added that the pricing decisions would "reinvigorate growth".
Lenovo Dell is scheduled to report its quarterly results May 18.
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