Dell Computer Corp’s higher-than-expected order backlog and lower-than-expected revenues led to an operating loss of 0.61 per share for the fiscal second quarter, chief executive Michael Dell told Reuter in a telephone interview: the product backlog was $25m higher than anticipated due to orders received at the end of the quarter, he said – We had a revenue shortfall, we had previously forecast several months ago revenues would be much higher, Dell said – the $701m in revenues (see page five) compared with company expectations of $710m to $730m, he explained, adding that the bigger loss was due to a large sell-off of excess inventory at poor margins which depressed Dell’s overall gross profit margins, as well as the higher-than expected backlog; We believe our gross margins will go up in the third quarter and up again in the fourth quarter, Dell commented.
