Dell 4Q Earnings and Revenues Drop

A Dell computer logo is shown in Dallas, Wednesday, Feb. 28, 2007. Dell Inc. is expected to release quarterly earnings on Thursday, March 1, 2007. (AP Photo/LM Otero) (Lm Otero - AP)

"It's a matter of going into new businesses, trying to compete beyond the core hardware market," he said. "But these are things that do not change overnight, these are yearslong strategies."

In January, Michael Dell resumed control of the company he founded as chairman and chief executive officer. He replaced his hand picked successor, Kevin Rollins, who stepped down in January.

His first action has been to revamp his top executive team, luring top corporate executives from Motorola Inc. and Solectron Corp. in recent weeks. In December, Dell replaced its chief financial officer with Donald Carty, the former chief executive of AMR Corp., parent of American Airlines.

Meanwhile, Dell has yet to resolve an accounting investigation led by the Securities and Exchange Commission.

The U.S. attorney for the Southern District of New York has also subpoenaed documents related to Dell's financial reporting from 2002 to the present.

It means Dell's earnings statements from the second, third and fourth quarters are preliminary and have yet to be filed with the Securities and Exchange Commission. Dell said he was working as quickly as possible to resolve its many problems but did not offer any time frame.

"We won't achieve our goals overnight, but we will achieve our goals," Dell said in a release. "We will be known again for strong operating and financial performance and a great experience for our customers. But it will take time to realize the future benefits of the improvements we are making today."

Roger Kay, president of Endpoint Technologies Associates Inc., said he was concerned about the myriad issues Dell faces. But he said like other large companies that have faced tough times, it should be able to turn things around eventually.

"The fact that they can't say when it's going to get any better, those things are not very reassuring," Kay said. "But it doesn't mean that they won't get it back together. I have a lot of faith that they're going to pull it together over time."

Dell shares closed up 16 cents to $23.01 Thursday on the Nasdaq Stock Market, then in after-hours trading. Its shares have ranged from $18.95 to $30.80 in the past year.

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