Dell, the world's second-largest personal-computer maker, reported first-quarter profit that topped estimates, bolstered by corporate technology spending.
Net income rose to $945 million, or 49 cents a share, from $341 million, or 17 cents, a year earlier, the company said today in a statement.
Excluding certain costs, earnings were 55 cents in the period, which ended on April 29th.
Analysts estimated 43 cents on average, according to data compiled by Bloomberg. Even so, sales missed analysts' estimates.
Under chief executive Officer Michael Dell, the company has used acquisitions to expand into corporate data centres, lessening its reliance on PCs.
A slowdown in home-computer sales has roiled industry leader Hewlett-Packard Co., which cut its annual sales forecast earlier today.
Dell fell 10 cents to $15.90 at 4 p.m. New York time in Nasdaq Stock Market trading, before the results were released. The shares have climbed 17 per cent this year.
The company reiterated its full-year sales growth forecast of 5 per cent to 9 per cent, indicating revenue of at least $64.6 billion.
Dell said operating income will increase 12 per cent to 18 per cent for the year. When Dell last reported its earnings in February, it predicted a range of 6 per cent to 12 per cent.
First quarter sales last quarter rose less than 1 per cent to $15 billion, Texas-based Dell said.
Analysts had estimated $15.4 billion on average.
Bloomberg
