Dell Inc. said yesterday that its latest quarterly profit dropped 54 percent as the company continues to battle a sales slump.
Hewlett-Packard Co. and Acer Inc. have gained business from Dell as the company grapples with anemic spending on technology by corporations and government agencies. Those large customers make up 80 percent of Dell's business. Dell said that a meaningful improvement in technology spending by big businesses won't come until next year.
Dell said after the market closed that its net income was $337 million, or 17 cents a diluted share. Revenue fell 15 percent to $12.9 billion.
The company said that desktop-computer revenue was down 9 percent compared with a year ago to $3 billion, or 23 percent of its overall revenue. Laptop computer revenue was up 8 percent to $4.2 billion, or 32 percent of its overall revenue.
Dell eliminated about 400 jobs Wednesday at its desktop-assembly plant in Winston-Salem. The remaining 505 jobs will be cut as Dell winds down production at the plant about Jan. 20.
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