Dell posted a disappointing drop in quarterly earnings and said spending cutbacks on information technology have spread from the United States to Western Europe and Asia, sending its shares down more than 10 percent.
"They're saying lower IT spending is spreading. That is evidence of a global slowdown in IT spending. This certainly isn't good news for tech overall. Dell's outlook is for slower spending—especially in Asia and Western Europe,'' said Tim Ghriskey, chief investment officer at Solaris Asset Management, who also noted weakness in Dell profit margins.
The world's second-biggest maker of personal computers reported second-quarter earnings of $616 million, or 31 cents a share, against a profit of $746 million, or 32 cents a share, in the same period last year.
The results included 2 cents per share in amortization and business realignment costs.
Sales in the most recent period rose to $16.43 billion, compared with $14.771 billion last year.