Dell Inc, the largest personal computer maker, reported on Thursday that its first-quarter profit rose 28 percent on an increase in demand outside the US and a strong finish to the quarter.
The company, based in Round Rock, Texas, said its profit increased to US$934 million, from US$731 million a year ago, and earnings increased to US$0.37 a share, from US$0.28 a year ago.
"We remain confident and optimistic about our business," said Kevin Rollins, Dell's chief executive, in a conference call with analysts.
"Dell continued to grow faster than the rest of the industry," Rollins said.
He said the company's sales outside the US grew 21 percent in the quarter, which ended April 29, and now account for 42 percent of total revenue.
First-quarter revenue rose 16 percent, to US$13.39 billion, from US$11.54 billion in the period a year ago.
Dell experienced slower sales in February and March, but then sales picked up in April, executives said.
"By and large, my concerns for the quarter did not play out," said Brent Bracelin, an analyst at Pacific Crest Securities.
"Dell shined in a very challenging quarter," he said.
Bracelin said that he was encouraged by Dell's shift in the quarter to higher-margin products like storage and services, and its growth in higher-margin overseas markets.
Dell executives said the company was benefiting from consolidation and other changes in the personal computer industry, such as IBM's sale of its personal computer unit to Lenovo Group Ltd (
The company has typically been quick to react to new market opportunities because of its efficient distribution model.
"The industry continues to be in transition," Rollins said. "This environment is ideal for our model and plays to the strength of our strategy."
The company's results were roughly in line with Dell's expectations, which the company had reiterated in April when it forecast first-quarter earnings of US$0.37 a share on revenue of US$13.4 billion.
Analysts had forecast revenue of US$13.42 billion, according to Thomson First Call.
Looking ahead, Rollins said Dell expected revenue in the second quarter of US$13.6 billion to US$13.8 billion, and earnings of US$0.37 to US$0.39 a share, roughly the same as analysts.
Company executives reiterated Dell's goal of becoming an US$80 billion company within the next four years.
"Dell is becoming a much more diversified company," Rollins said.
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