Dell is attempting to put a positive spin on its latest quarter despite falling profits.

The company logged some $16.4bn in revenues over the quarter, leading to $616m in net income.

Revenue numbers were up some 11 per cent from the same quarter last year, but net income was down by 17 per cent over the period.

Dell also took a $52m hit from acquisition and realignment costs.

The drop is not welcome news for Dell, which is still in the process of an internal makeover led by founder and chief executive Michael Dell that has included the company's first forays into retail outlets.

The company pinned much of the blame for the sagging numbers on its rebuilding operation.

Efforts to expand the business in EMEA, as well as new global consumer programmes, were credited for the drop in profits.

"We are positioning Dell to win in a new era of global IT spending," said Dell.

"Our growth at a multiple of the industry across all major product categories for the second consecutive quarter affirms we are on track with our five key business priorities: notebooks, consumer, enterprise, SMB and emerging countries."

Wall Street did not share Dell's optimism. The company failed to meet analyst estimates and shares fell by more than 12 per cent as a result.