Dell First Quarter Profits Decline Five Per Cent

Computer manufacturing giant Dell Computers posted a five per cent drop in fourth quarter profits, despite seeing revenues grow to US$14.9 billion.

The Round Rock Texas based company said net income for the quarter ending January 9th was US$334 million, compared with US$351 million during the same period in the previous year.

Revenues grew largely as a result of increased sales in its lower end notebook computer range, however the lion’s share of Dell’s comes from the business market, which is only just beginning to recover from the global economic slowdown.

“We achieved solid revenue growth in every part of our business. Our commercial units are well poised for profitable growth as demand continues to return.” Dell chief financial officer Brian Gladden said.

Dell executives say they are cautiously optimistic about the prospect for recovery in the business computer segment.

Earlier in the day rival Hewlett Packard said its first quarter profits surged to US$2.3 billion, as sales of personal computers drove profitability.

California-based HP’s best performers were personal computers, unit sales of which surged 26 per cent.