Dell posts higher Q2 earnings

It pointed to increased global demand for its PCs and servers

Dell Inc. today posted second-quarter revenue of $11.7 billion, 20% higher than in the same quarter a year ago. The company, which reported its earnings after the close of financial markets in the U.S., cited increased global demand for its PCs and servers.

The company reported net income for the second quarter of $799 million, or 31 cents per share. That figure compared with $621 million, or 24 cents per share, it reported in the same quarter a year ago.

According to a statement, sales in Europe, the Middle East and Africa, and in Asia-Pacific and Japan rose 30% and 29%, respectively, in the quarter that ended July 30. Combined revenue for enterprise systems, including servers and storage systems, accounted for 22% of overall sales, matching a company high.

The company said that a 31% second-quarter increase in server shipments was above the average server growth for other companies, and it said revenue from software and peripheral products rose 31%, aided by strong demand for Dell printers. In notebook computers, Dell's combined shipments of Inspiron and Latitude systems rose 28%. Dell also said that sales of notebook computers to U.S. consumers were up 29% from the same period a year ago.

Looking ahead, Dell CEO Kevin Rollins said third-quarter shipments are expected to be 21% higher than in the same quarter last year. That growth is expected to produce quarterly revenue of about $12.5 billion, up 18%, and earnings per share of 33 cents, a 27% increase from the third quarter of the previous fiscal year.

"Like our shareholders, our expectation is for volume and share growth along with solid profitability," he said. "Those objectives aren't mutually exclusive."

Copyright © 2004 IDG Communications, Inc.

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