Dell Profit Dips as Revenues Climb

Revenues were pushed up by sales of notebook computers.

Dell on Thursday reported that its fourth-quarter profits slipped 5% despite revenues climbing to $14.9 billion.

The Red Rock, Texas-based computer giant's net income for the fiscal quarter ending Jan. 29 was $334 million, or 17 cents per share, as compared to $351 million, or 18 cents per share, during the same period a year earlier.

Revenues were pushed up by sales of economical notebook computers, but the business market where Dell makes about half its sales is only beginning to revive from the recent global fiscal drubbing.

"We achieved solid revenue growth in every part of our business," said Dell chief financial officer Brian Gladden. "Our commercial units are well poised for profitable growth as demand continues to return."

Dells services revenue was boosted by its purchase of Perot Systems in the fourth quarter.

Dell executives said they are "cautiously optimistic" about businesses ramping up purchases of computers this year.

Dell's outlook echoes one expressed a day earlier by technology giant Hewlett-Packard, which reported its first-quarter profit surged to $2.3 billion fueled by sales of personal computers.

California-based HP's best performers were personal computers, unit sales of which surged 26%.

"We will continue to invest in growth and leverage our scale and global position to take advantage of an improving demand environment," said HP chief financial officer Cathie Lesjak.

Note: IW staff contributed to this article.

Copyright Agence France-Presse, 2010

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