Dell (DELL) was the last of the big tech companies to report this summer. If it did well it meant that the PC and chip businesses would be OK. Dell sells so many computers and servers to enterprises that strong numbers would have meant IT spending had not collapsed.

None of that worked out. Net income at Dell dropped 17% to $616 million in the quarter on a revenue increase of 11% to $16.4 billion. And, the company bought back more shares.

The really bad news was in the details. Revenue in the Americas was only up 5%. Europe was only 11%. In Dell’s growing consumer business, the company said it only broke even.

In several of Dell’s most critical businesses, margins fell apart. Notebook units grew 44 percent with revenue growth of 26 percent. In other words, some one got a discount. In the firm’s small business unit, shipment growth was 8 percent on a revenue increase of 5 percent.

Dell left investors hungry for guidance. It said it would control costs and hope for the best.

Dell has now spent $1.4 billion to repurchase 60 million shares of stock. Year-over-year, shares outstanding are down 11%. It is a testament to just how badly run Dell is. Including its after-hours loss of 10%, Dell’s shares have underperformed the Dow during the last year.

And, the company has wasted a lot of cash.

Douglas A. McIntyre

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