Dell revenue, net income grow in Q2

Dell Computer released strong second-quarter results amid a weak PC market Thursday, and predicted strong third-quarter earnings.

Dell, based in Round Rock, Texas, posted net income of US$501 million on revenue of $8.5 billion in the second quarter of the company's 2003 fiscal year, which ended Aug. 2. Revenue increased 11 percent over the second fiscal quarter of 2002, while net income increased by 16 percent.

Earnings per share were $0.19, matching expectations of analysts polled by Thomson Financial/First Call.

Shipments of Dell's products worldwide rose 18 percent in the second quarter year-on-year. Excluding Dell, industry volumes decreased 4 percent in the same period, the company said. Shipments of the company's Precision PCs increased 24 percent over last year's second quarter, and Dell's PowerEdge servers rose 18 percent in terms of shipments.

Cost-cutting measures are expected to save the company $1 billion in this fiscal year, and the company is ahead of schedule for that, it said.

The company predicted third-quarter revenue of $8.9 billion, and a 5 percent increase in shipments.

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