Dell Reports First-Quarter Results, Job Cuts

Wachovia agrees to acquire A.G. Edwards, and more stocks in the news Thursday

Dell (DELL) reports preliminary first-quarter operating income of $947 million and earnings per share of $0.34 (better than expected), on revenue of $14.6 billion. The PC maker said that in its second quarter, operating margins will be under pressure sequentially as the company enters the seasonally slower quarter with elevated operating expenses and additional costs related to the ongoing investigations into its accounting. It added that results for the year could be affected by additional transformational actions, changing competitive dynamics, a more aggressive pricing environment and higher component costs in the second half of the year. It will also cut 10% of its workforce, or about 8,800 jobs, over the next year to cut costs.

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