Dell's Dejection

Updated from March 1

Dell(DELL Quote) fell 3% early Friday after warning that its financials will remain under pressure for the next several quarters.

With results below already dampened expectations, and amid evidence that even sales of popular notebook PCs are stalling, CEO Michael Dell urged investors to be patient as he tries to revive the company he founded more than 20 years ago.

"We will be known again for strong operating and financial peroframnce and a great experience for our customers," Dell said in a statement. "But it will take time to realize the future benefits of the improvements we are making today."

Sales for the three months ended Feb. 2 slipped 5% from a year ago to $14.4 billion, marking the first year-on-year sales decline since 2001. The results were a half a billion dollars short of Wall Street's dampened expectations, which called for $14.9 billion in sales.

Net income slumped to $673 million, or 30 cents a share, from $1 billion, or 43 cents, at this time last year, a 33% decline. Dell said the EPS got a 6-cent benefit by not paying full employee bonuses and an additional penny from the sale of certain real estate. The ongoing Securities and Exchange Commission investigation into Dell's accounting practices reduced EPS by 3 cents.