Dell Computer Corporation said last night its third-quarter net income fell 36 per cent despite taking market share from its rivals in a price war.
Dell, which employs over 4,500 people at its plants in Limerick and Bray, said it would continue to gain against competitors in the fourth quarter, forecasting sales would rise slightly over third-quarter levels as industry-wide revenue falls.
The Texas-based company said net income fell to $429 million, or 16 cents per share, from $674 million, or 25 cents per share, in the year-earlier period. Analysts had on average expected earnings per share of 15 cents, according to research firm Thomson Financial/First Call.
Dell's profits come in stark contrast to the PC operations of rivals such Hewlett-Packard and Compaq Computer, which have suffered amid stagnant PC demand, weak corporate spending on technology and an economic slowdown.
Dell said sales to government customers and consumer increased but education sales fell and demand from corporate customers remained weak. However, it said margins were stable.
Dell chief executive Michael Dell said the company sees fourth-quarter earnings per share at 16 cents.
Dell shares have risen about 59 per cent this year, while the American Stock Exchange Hardware Index has lost 28 per cent. Dell ended slightly higher in yesterday’s trading on the NYSE ahead of the earnings announcement, closing at $27.69. In trading after the close, they fell to $27.55.