Dell hits first-quarter earnings mark

Dell hit its first-quarter revenue and earnings marks for its fiscal year 2002 Thursday, driven by brisk sales of corporate systems and swelling global market share, and reported net income of US$462 million.

It met the earnings expectations of a Thomson Financial/First Call survey of 22 analysts, who predicted earnings per share of $0.17.

The number-one company in direct personal computer sales reported a 10 percent year-over-year increase in revenue to $8 billion.

Dell saw a 27-percent increase in units shipped worldwide over the same period last year, and shipments of Dell PowerEdge servers increased 50 percent in the first quarter over the year ago period, allowing the company to snatch the title of number-one U.S. server vendor for the first time, Dell said.

Dell predicted earlier this month that it expected to meet revenue and per share earnings expectations, but said that as a further cost-cutting measure it would layoff between 3,000 and 4,000 employees over the next two quarters. The Texas-based company already laid of 1,700 employees in February after missing the mark on fourth-quarter earnings expectations.

Dell stock (DELL) closed at $25.88, up 1.97 percent Thursday. The results were released after markets closed.

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