Dell Computer announced slightly lower first-quarter earnings but topped Wall Street expectations and said it would build on market share gains in the second quarter.
The company said it beat the projections it gave analysts last month by taking market share and selling more of its pricier computers, such as notebook computers and the large computer servers that are used by businesses.
Dell said it has not seen a rebound in technology spending, although demand has stabilised. Companies are buying less new technology because of the economic downturn and capacity left over from spending freely as the economy soared in the 1990s.
Dell said net income for the first-quarter, which ended on May 3rd, fell to $457 million, or 17 cents per share, compared with $462 million, or 17 cents per share, in the year-earlier quarter. Revenues rose slightly to $8.07 billion from $8.03 billion.
Analysts' average estimate for earnings was 16 cents a share and revenue of $7.8 billion, according to research firm Thomson Financial/First Call.
Shares of Dell rose to $28.27 in after-hours trade after rising 15 cents, or 0.5 per cent, to $27.85 on the Nasdaq market ahead of the results.