US computer maker Dell Incorporated last night reported a 28% rise in quarterly net profit to a record $1.02 billion, despite steep falls in prices of personal computers. The figure translated into earnings per share, excluding one-time items, of 38 cents, in line with analysts' forecasts.
But Dell's second-quarter revenues of $13.43 billion, while up 15% from a year ago, fell short of analysts' target of $13.7 billion.
'Our teams performed well in a dynamic market. Our growth in the second quarter was characterised by share increases in every region,' Dell chief executive Kevin Rollins said in a statement. 'While average selling prices were down more than we would have liked, we focused on balanced profitability and, in the process, delivered to our guidance for EPS,' he said.
Dell offset the price declines in personal computers by boosting unit sales faster than its rivals. According to technology research firm Gartner, during the second quarter Dell posted a 23.6% increase in PC shipments, while the total market grew by 14.8%.
Dell benefited in the quarter from an exceptional gain of $85m after repatriating foreign earnings under a new US tax law.
For the third quarter, Dell targeted EPS of between 39 and 41 cents, on sales of $14.1-14.5 billion. Analysts had previously pegged the company's profit at 41 cents a share on revenue of $14.6 billion.
The company also said it planned to buy back $1.2 billion worth of shares in the three-month period.
