Dell beat Wall Street's profit and revenue estimates in the second quarter and said it expected a continued "pick up" in demand for PCs from corporate customers for the next several quarters.
But the company's gross profit margin lagged Wall Street expectations and its shares fell in after-hours trading today.
Revenue rose 22 per cent to $15.5 billion compared to Wall Street's estimate of $15.2 billion, thanks to strength in sales of server and networking products.
The world's third largest personal computer maker reported net income of $545 million, or 28 cents a share, up from $472 million, or 24 cents a share, for the same quarter a year earlier.
Dell said its adjusted gross profit margin was 17.2 per cent in the quarter, below the 17.7 per cent expected by analysts.
The company said it expected demand for PCs among corporate customers to continue for the "next several" quarters. It said it expects "seasonal improvements" in the third quarter, thanks to sales to the federal government and business customers, with a resulting "pick up in the low single digits."
Dell reiterated its fiscal 2011 revenue forecast of 14 per cent to 19 per cent growth, and adjusted operating income growth of 18 per cent to 23 per cent.
Shares of Dell, which are down roughly 31 per cent since April, fell to 2.6 per cent to $11.73 in extended trading.
Reuters