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Looking forward, Dell's guidance reflects its move towards enterprise-focused, high-value solutions. Dell said for all of fiscal 2012, non-GAAP operating income is trending above its previous outlook of 17 percent to 23 percent growth. However, it is trending towards the bottom of its previous revenue outlook of a 1 percent to 5 percent growth for the year.
Jeffrey Clarke, Dell vice chairman of global operations and end user computing solutions, said that Dell, like the industry as a whole, is suffering from the hard drive shortage caused by this year's Thailand floods, and that Dell has put programs in place to help mitigate the impact.
The flood waters in Thailand are still receding, which makes it difficult to pinpoint the magnitude or duration of the hard drive shortages, Clarke said.
"So, that puts the industry in an allocation environment at least through Q1," he said, according to the transcript. "Last month, we made strategic purchases of inventory, and pulled in supply from our hubs. This drove an increase in our end of quarter DSI (days sales of inventory). We also have teams working with the impacted suppliers to manage our hard drive supply chain, and qualify news sources of supply."
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