Dell Computer Corp., Austin, TX, had a second quarter net loss of $101 million, a figure that included a one-time charge of $743 million for job reductions, consolidation of facilities and other charges. A year ago Dell had net income of $603 million.
The company’s revenue slipped slightly, from $7.67 billion to $7.61 billion. The quarter ended Aug. 3.
Dell has reduced its European work force by 600 employees, consisting of workers that had voluntarily accepted severance packages, according to reports. While the reductions primarily took place in the United Kingdom and Ireland, Dell is augmenting its German workforce, wire services reported.
Dell reported that its revenue was affected by sharp decreases in component costs. The company passed the reduced costs to its direct-to-consumer customers. This, combined with intense price competition within the industry, contributed to a drop in gross margin to 17.5% from 21.3% a year ago.
