DELL CONTINUED to be a standout in the slumping computer industry, posting better-than-expected quarterly profit and revenue. Results came in largely in line with the PC maker's year-earlier performance.Dell Computer Corp. (DELL) posted better-than-expected figures for its fiscal first quarter, as the results came in largely in line with the personal-computer maker's year-earlier performance.
The Round Rock, Texas-based company late Thursday reported net income of $457 million, or 17 cents a share, in the quarter ended May 3, compared with $462 million, or 17 cents a share, a year earlier.
Revenue rose 0.5% to $8.07 billion from $8.03 billion.
Dell, the world's largest maker of personal computers, last month told analysts that it expected to meet Wall Street expectations for earnings of $435 million, or 16 cents a share, and have revenue of about $7.9 billion. The sales figure at the time was about $200 million higher than analysts were expecting, and Dell attributed the bullish outlook to better-than-expected performance by the company's U.S. sales operation, not market demand.
Looking ahead, the company said second-quarter revenue should come in at about $8.2 billion -- an 8% rise from the year-earlier second quarter, with industry unit shipments off about 5% from the first quarter, in line with seasonal patterns. Dell pegged per-share earnings at about 18 cents, a penny a share higher than the Thomson Financial/First Call estimate. Year-earlier earnings excluding items were $433 million, or 16 cents a share, on revenue of $7.61 billion.
"Our objectives are simple and unchanged: to further reduce costs; to deliver great value to customers, particularly enterprise customers; and to profitably gain market share," said President Kevin B. Rollins in a prepared statement. " We're continuing to make good on all three commitments."
The company noted it is on track or ahead of plans for further cost reductions in product design, manufacturing and distribution, operating expenses and warranty costs. Dell said it should be able to cut costs by more than $1 billion in fiscal 2003.
In after-hours activity, the stock was at $28.23, according to Island ECN. |
