Dell said today it expects to achieve GAAP earnings per share of approximately 33 cents for its fiscal 2007 first quarter and expects revenue of approximately $14.2 billionversus its original guidance of $14.2 to $14.6 billion and earnings per share of 36 to 38 cents, including an estimated three cents of stock-based compensation. The shortfall in earnings versus previous guidance was driven primarily by pricing decisions in the second half of the quarter that the company expects will accelerate revenue growth in the future.
"During Q1 we continued to execute on our strategy to reinvigorate growth by making investments in our support infrastructure and product quality and by accelerating pricing adjustments," said Kevin Rollins, Dell's Chief Executive Officer. "We are committed to delivering industry leading value to our customers, which ultimately results in industry leading growth for the company."
Dell will announce financial results for fiscal 2007 first quarter on May 18.