Dell's profits ahead of expectations

Dell’s quarterly sales and profits beat expectations, but its gross margin fell short of analysts’ forecasts and the computer maker warned that components supply will remain tight.

Dell has been struggling to boost profit margins as a result of sales of personal computers at lower prices and higher costs of components, including memory. Analysts said the results show Dell still had a way to go in shifting to higher-margin businesses, despite its recent acquisition of technology services company Perot Systems.– (Reuters)