The company posted net income of US$290 million for the quarter ending on May 1, falling from the $784 million it reported in the first quarter of last year. The net income was well short of revenue expectations of $440 million from analysts polled by Thomson Reuters. Dell reported earnings per share of $0.15.

The company reported a charge of $185 million related to restructuring expenses.

Dell's quarterly revenue fell to $12.3 billion during the first quarter, a 23 percent drop from the previous year. Revenue was short of analyst expectations of $12.6 billion.

Despite the reduced earnings, Dell tried to stress that it was taking steps to maintain profitability during the challenging economic environment. The company continues to cut costs and is looking to get deeper into sustainable markets like data centers, services and software.

"Signals about the demand environment are mixed, but we're preparing for what we believe will be a powerful replacement cycle, with virtualization and managed services playing larger roles in what customers want and Dell provides," said Michael Dell, chairman and chief executive officer of the company, in a statement.