Dell Lays An Turd -- What? Businesses are not spending?

Revenues down from last year, losing market share to Acer, profits down 54% from last year.

Expectations were priced in that Dell would beat, so the earnings ugliness is a surprise to the green shooters.

Dell reported a net profit of $337 million, or 17 cents a share, for its fiscal third quarter, down from $727 million, or 37 cents a share, in the year-ago period.

Revenue fell 15 percent to $12.9 billion, missing the average analyst estimate of $13.2 billion, according to Thomson Reuters I/B/E/S.

While the revenue shortfall was troubling, some analysts also expressed concern about Dell's margins, particularly because the company had stressed profitability over growth amid a $4 billion cost-cutting effort.

Dell, which relies primarily on sales of PCs to businesses, has suffered as companies dialed back spending during the economic downturn. Acer and HP have also been waging a price war, analysts say, particularly in consumer laptops.

 But weren't consumers the ones that were holding back the recovery? Now  businesses are unwilling to spend?  Huh, What A Surprise (sarcasm)

This will likely have a impact early in the morning, and I will look to take immediate profits on the shorts added this afternoon, and exit additional positions as the selling slows down.

It looks to be a good idea to have added shorts at the close.