Dell Q2 2009 profits down 23% thanks to slumping business sales

Dell founder and CEO, Michael Dell

Dell (DELL) just released its quarterly financial earnings today minutes before the closing bell in regular day trading, helping to rally the stock up 6 points as the company beat out Wall Street expectations.

Dell said revenue was down almost 23-percent to $12.8 billion (Wall Street expected $12.6 billion).

Dell reported Q2 2009 profit as $472 million ($0.24 per share).

The profits are down significantly compared to last year in the same period, when Dell reported profits of $616 million ($0.31 per share).

 Dell reported a strong 17-percent rise in total shipments, but revenue was still down to $2.9 billion.

Dell said sales in the business market (including governments and institutions) were $3.3 billion, a 32-percent decline compared to the same period last year.

About 80-percent of Dell’s aggregate business is generated from sales to businesses, government and other institutions.

The decline can be attributed to less demand from the business market side as corporations and institutions reduce spending to better deal with the economic downturn.

Dell says it expects revenue in the second half of 2009 to be better than results reported today.

Dell is currently in second place as the world’s top computer maker, just behind the leader HP. Acer remains in the third spot.