Irish computer sales experienced double-digit growth in the second quarter 2003, suggesting the technology market is slowly returning to health, the computer company Dell has said.

Mr Tim McCarthy, general manager, Dell Ireland, said yesterday the results represented the first positive growth after four or five negative quarters in the Republic.

"It is cause for optimism," said Mr McCarthy in an interview with The Irish Times. "Hopeful is how I feel about the global economy and Irish economy."

Mr McCarthy made the comments after Dell reported its fifth consecutive quarter of year-on-year profit improvement. The world's biggest computer company also forecast stronger third-quarter sales than financial analysts had expected.

Shipments of the firm's desktop computers, notebooks and servers rose on average 27 per cent from a year ago, faster than the growth of the rest of the computer industry.

Mr McCarthy said sales in Europe, which are manufactured at Dell's Limerick plant, grew 31 per cent in the quarter, three times faster than the whole market. He said Dell's market share would grow in Europe.

Mr McCarthy confirmed that the firm was still reviewing its property in the Republic, although no decisions had been taken. It has been reported that Dell is considering moving from one of its Dublin sites, which employ 1,300 staff, to cut costs.

Mr Roger Kay, an analyst at market research firm IDC, said Dell's results reflected a pretty steady performance. "The PC market, which has suffered stagnant growth for the past three years, did tick up in the second quarter."

Co-founder, chairman and chief executive Mr Michael Dell said sentiment among corporate executives was improving slightly, following three years of recession in IT spending.

Dell, which is based in Texas in the US, reported net profit of $621 million (€551 million), or 24 cents per share, for the fiscal second quarter ended August 1st, up from $501 million, or 19 cents per share, a year earlier. - (Additional reporting Reuters)