Dell's net income dives 63 percent in Q1

From InfoWorld: Dell on Thursday reported a 63 percent fall in net income during the first quarter of 2010, triggered partly by reduced PC sales and a restructuring charge related to cost cutting.

The company posted net income of $290 million for the quarter ending on May 1, falling from the $784 million it reported in the first quarter of last year. Dell reported earnings per share of $0.15. Excluding one-time items, earnings per share was $0.24, slightly over the consensus forecast of $0.23 per share from analysts polled by Thomson Reuters.

The company reported a charge of $185 million related to restructuring expenses.

Dell's quarterly revenue fell to $12.3 billion during the first quarter, a 23 percent drop from the previous year. Revenue was short of analyst expectations of $12.6 billion.

Despite the reduced earnings, Dell tried to stress that it was taking steps to maintain profitability during the challenging economic environment. The company continues to cut costs and is looking to get deeper into sustainable markets such as data centers, services and software.

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