Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Dell (Nasdaq: DELL) dropped 11% in intraday trading today after reporting revenue fell short of expectations in its most recent quarter and lowering its revenue forecast for the fiscal year.

So what: Non-GAAP EPS of $0.54 rose 69% year over year and beat the $0.49 consensus estimate. GAAP EPS of $0.48 rose 71% from the year-earlier quarter. Revenue of $15.7 billion grew a modest 1% year over year.

Now what: Management said demand is "more uncertain" because of the economy. For the fiscal year, management lowered its revenue from growth of 5%-9% to growth of 1%-5%. Despite the lower revenue expectations, it guided non-GAAP operating income for the fiscal year up, from growth of 12%-18% to growth of 17%-23%. Management chalked up its higher margin expectations to consistent execution in the first half of the fiscal year, continued management of lower-margin business, and a positive mix shift to Dell intellectual property and higher-valued products. If it can't keep revenue growing, however, the transformation can only take earnings growth so far.

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