Dell Computer Corp, the world's second-largest personal-computer maker, said first-quarter profit rose 31 percent as it took computer sales from rivals and increased overseas revenue.
Net income rose to US$598 million, or US$0.23 a share, from US$457 million, or US$0.17, a year earlier, the company said in a statement. Sales in the period ended May 2 rose 18 percent to US$9.53 billion from US$8.07 billion, the fifth quarterly increase in a row.
Dell shipments rose 29 percent from a year earlier while the industry lost 1 percent. In the quarter Dell gained market share for PCs and server computers from rivals such as Hewlett-Packard Co (HP) and Gateway Inc. Dell, which gets most of its sales in the US, said shipments grew more than 30 percent in Europe and 67 percent in China -- now Dell's fourth-largest national market.
"They're taking market share, growing revenue like they said they would," said Chuck Jones, who helps manage US$8 billion at Stein Roe Investment Counsel, which owns Dell shares.
The company forecast second-quarter profit of US$0.24 a share on sales of more than US$9.7 billion. Analysts expected on average earnings of US$0.24 on revenue of US$9.75 billion, according to a poll by Thomson Financial.
In last year's second quarter, net income was US$0.19 with sales of US$8.46 billion.
Dell shares, which have risen 41 percent in the past three months, fell as much as US$0.78 to US$31.40 after the sales forecast disappointed some investors. They were down US$0.64 to US$31.54 at 6:28pm New York time.
"You may have investors that were buying into the company in anticipation of it materially beating its revenue and earnings estimates, and it really hasn't done that," said Jim Lyon, director of equity investments at Oakwood Capital Management LLC, which oversees US$360 million, including 63,000 Dell shares.
The shares fell US$0.07 to US$32.18 as of 4pm New York time on the NASDAQ market. Shares of the Round Rock, Texas-based company have climbed 20 percent this year. The Standard & Poor's 500 Index has risen about 7.6 percent.
Dell said the rest of the computer industry should have shipment increases of 3 percent.
"The IT spending environment has not changed significantly but appears to have stabilized," President Kevin Rollins said on a conference call with analysts.
Dell said shipments to European countries were partly aided by a weak US dollar, Chief financial officer James Schneider said.
HP is the world's biggest PC maker as ranked by units shipped in 2002. Dell claimed a 16.9 percent market share in the calendar first quarter, compared with HP's 15.6 percent, according to Dataquest Inc.
HP chief executive Carly Fiorina has said the two companies will exchange the top position in the coming quarters. Rollins disagreed.
Dell's facility in Taiwan will open Monday after being shut down because one employee was suspected of having SARS, Rollins said. Employees have been working from home on the Internet, he said.
SARS "has had no impact on our ability to manage," Rollins said.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source