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Dell revenue soars on server and notebook sales

Dell's first-quarter revenue and net income was buoyed by strong sales of high-margin products such as servers and notebooks.

Revenue for for the period ending 30 April was $11.5bn, up 21% from the same period the previous year and slightly more than the $11.4bn expected by industry analysts.

Net income was $731m, up 22% from the $598m Dell earned in the first quarter of 2004.

Server shipments increased 24%, and notebook shipments rose 39%. The growth in the company's shipments exceeded that of other industry suppliers in both categories, Dell said.

Dell increased shipments to Europe, the Middle East, and Africa by 33% year on year. The company also now leads the industry in Intel architecture-based server shipments to both Japan and China, the two largest markets in Asia-Pacific.

Dell's US corporate business had the best quarter it has seen in three and a half years. The company has seen stronger growth outside the US, mainly because the majority of its business is done within North and South America, but US corporate demand appears as healthy as ever.

Component costs increased a little bit more than the company had expected, and memory prices have risen steadily over the past few months, although Dell expected the prices to stabilise in the second quarter.

Dell expects to record $11.7bn in revenue for the second quarter. Both figures represent 20% increases compared with last year's second quarter.

Tom Krazit writes for IDG News Service


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