Dell Blames Revenue Shortfall on Europe and Small-Business Demand

Updated from 6:57 p.m. ET

Dell (DELL) started its fall analyst meeting with some bad news.

The company told attendees and investors viewing the meeting over the Internet on Wednesday afternoon that its revenue growth is currently trending about 3 percentage points below expectations. Dell said that if the current environment extended through the end of the year, fiscal 2001 sales would total $32 billion. (The year ends in January.) The company blamed weak European demand and slower-than-expected sales to small businesses around the world.

The $32 billion sales figure would put Dell's year-over-year revenue growth at 27%, short of the 30% growth to which the company has been guiding analysts. ...