Dell has broken previous profit records with its first quarter results, announced last week. The direct sales computer manufacturer reported earnings of $82 million or 84 cents per share for the three months ending April 28. This represents a 33 per cent increase on the same period last year which saw profits of $62 million or 55 cents per share. Revenues leaped 44 per cent to u1.64 billion.
Dell also ended the quarter in a cash-rich state, reporting $853 million in cash and marketable securities. Although the manufacturer had spent $100 million in buying back 3.3 million shares in its own stock, this represents $207 million more than was held at the end of last quarter.
Michael Dell, the company's chairman and CEO, put Dell's success down to its sales philosophy. 'Our success in this quarter underlines the efficiency of our direct-to-the-customer business approach,' he said.
According to Dataquest and IDC, Dell is now ranked the fifth largest PC company in the US based on number of units shipped. The company also claims to be fifth in Europe.
Dell's US sales this quarter were up 51 per cent on last year at $1 billion while Dell Europe, with sales of $467 million, grew 34 per cent.
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