Dell profit hits a Q2 high note

The falling costs of components and improved performance of Dell's direct sales operations led the manufacturer to increase its turnover and profit in Q2.

For the period ended 28 July, Dell recorded a profit of $103 million, a rise of 58 per cent. The company's turnover was $1.69 billion, up 38 per cent on the same quarter last year, when it stood at $1.2 billion.

The increases were greater than had been expected by industry analysts.

Company CEO Michael Dell said: 'Dell excelled in every measure of performance this quarter. Our direct model delivered one of the highest unit-growth rates in the industry. We ended the quarter with nearly $1 billion in cash and marketable securities on our balance sheet.'

He also claimed that sales of Dell PC servers had been extremely encouraging, in an area of the market where margins are greater.