NEW YORK (CNNMoney.com) - Dell, the world's biggest PC maker, said Monday it has lowered its earnings forecast for the first quarter, and that revenue is expected to come in at the low end of its previous outlook.

Dell said it expects GAAP earnings per share of approximately 33 cents for its fiscal 2007 first quarter and revenue of approximately $14.2 billion. Its original guidance was $14.2 billion to $14.6 billion in revenue and earnings per share of 36 to 38 cents; both per-share estimates included an estimated three cents of stock-based compensation.

The company attributed the adjustment to a drop in prices, but said that the move would have long-term benefits.

"During Q1 we continued to execute on our strategy to reinvigorate growth by making investments in our support infrastructure and product quality and by accelerating pricing adjustments," said Kevin Rollins, Dell's Chief Executive Officer, in a statement. "We are committed to delivering industry leading value to our customers, which ultimately results in industry leading growth for the company."

"We've been saying since last October that the company has lost its mojo," said Cindy Shaw, an analyst with Moors & Cabot, told Reuters. "It appears to be going through a multi-quarter refit and it appears there are several quarters ahead of it. It doesn't have the pricing advantage it once had and it does not have the service advantage."

Dell (Research) shares, which rose 2.9 percent in regular-hours trading Monday on Nasdaq, slid 6 percent to $24.84 in after-hours trading on Inet.

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