Dell reverses its fortunes

22 Nov 2006

Dell appears to have ended a cycle of poor performance, last night reporting a 3.4pc year on year increase in revenues from US$13.9bn last year to US$14.4bn in the latest third quarter.

The company, which is one of Ireland’s largest employers with 4,000 people working in Limerick and Dublin, apparently dazzled Wall Street, reporting a net income of US$677m, or 30 cents a share, beating analyst estimates of 24 cents a share. A year ago the company reported a net income of US$606m, or 25 cents a share.

The quarterly results were delayed by a week as a result of an investigation by the Securities and Exchanges Commission (SEC) into Dell’s accounting practices.

Because of this Dell cautioned that its results were preliminary and subject to restatement because of questions raised by the SEC and the US attorney for the Southern District of New York.

The company has yet to file statements for its second quarter which ended on 4 August.

By John Kennedy