Dell announces 54% fall in quarterly profit

US computer giant Dell today posted a 54% fall in quarterly profit.

Net profit at the company was $337 million (£202 million) in the three months to October, compared with $727 million in the same period a year earlier.

The news sent shares in the company down 6% as the company continues to lose market share to rivals due to a price war within the PC market.

Meanwhile, revenues at the firm plunged 15% to $12.9 billion, with revenues and net profit both falling short of analysts expectations.

However, the company was positive for the fourth quarter saying it expects revenue to improve.

In September, Dell announced it was to acquire Perot Systems in a $3.9 billion (£2.4 billion) deal.

Perot Systems, which is based in Texas, was founded by Texas billionaire and former US presidential candidate, Ross Perot.

Dell hopes the takeover will be finalised by January and said it will help it provide a wider range of services to its customers.

The two companies have a combined enterprise-hardware and IT-services revenue of $16 billion, with 50% of this deriving from enhanced services and support.

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