Dell Sees Stability, Street Sees Softness

Dell (DELL Quote) is trying to call a bottom in IT spending. But modestly in-line projections failed to spark confidence.

The Round Rock, Texas PC maker offered a financial update Monday calling for sequentially improved sales, which would be in line with Wall Street's expectations. The gains, however, come with a narrowing of gross margins, says Dell, blaming expensive parts and heated price competition.

Dell vowed to keep pushing toward its goal of eliminating $4 billion in costs. And looking ahead at the long-range forecast, Dell says it expects sales to grow between 5% and 7% annually. ...