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Dell Affirms Second-Quarter Forecast, Offers Big Talk on Servers

The Christmas season is still months away, but


(DELL) - Get Dell Technologies Inc Class C Report

is already spreading the good cheer.

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The personal computer maker this morning reaffirmed its second-quarter guidance, but the company said it will take a charge of $700 million in the second quarter for job cuts and the consolidation of facilities. Dell expects to post sales of $7.6 billion and earnings of 16 cents a share for the quarter, excluding the charges. The company will post earnings on Aug. 16. The Thomson Financial/First Call consensus estimate currently matches Dell's guidance of 16 cents a share.

Shares of Dell traded up 3.3% to $28.10 on Instinet in preopen trading.

The company also said it will introduce a new line of network switches in the coming third quarter, geared toward small- and medium-sized businesses. Dell also expects to maintain the top position in the U.S. server market during the second quarter.