Despite its previous profit warning, Dell has managed to continue to woo Wall Street and be the darling of the stock market by posting healthy third-quarter results.
Gleaning $35m in sales every day from its website, the hardware vendor posted a 26 per cent increase in pre-tax profit to $483m for its third quarter ended 29 October. Sales were up 41 per cent to $6.78bn. Web sales accounted for 43 per cent of the company's sales.
Michael Dell, chief executive of Dell, said: "Our internet sales represent only a portion of how we are doing and we will be using the web's speed and efficiency for the benefit of customers and the company. The internet is a powerful tool for any business, but it becomes even more compelling for a company that is based on direct relationships."
The vendor's global unit shipments increased by 59 per cent and turnover from Europe increased 22 per cent.
The figures were in line with analyst forecasts following Dell's earlier profit warning, mainly due to the spike in DRam pricing.
"We expect that the fourth quarter is going to be a healthy one," said Dell.
He went on to tell analysts he did not believe the year 2000 issue would damage businesses any longer. "We are more comfortable with it as every day goes by. There seem to be a group of customers that are buying at a more intense level," he added.
The third-quarter figures bring Dell's yearly turnover so far to $18.46bn - a 41.4 per cent rise.
The figures sent Dell's share price on Nasdaq up $2 to $43.43.
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