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Dell shares up nearly 10 percent on report of profit, revenue jump in fiscal 1st quarter

Growth in Asia and strong sales of notebook computers helped Dell Inc. beat Wall Street expectations for first-quarter sales and profit. That strong report pushed shares of Dell, the world's second-largest seller of personal computers, up 9.9 percent in late trading Thursday. Now, investors will try to determine if the results were a one-term wonder or a sign that founder and CEO Michael Dell's turnaround plan is working.

Notebook shipments jumped 43 percent in the first quarter compared with a year earlier. Dell had made them a priority, developing products for emerging markets, and the Round Rock, Texas-based company rang up more sales overseas than at home for the first time in the first quarter. Revenue rose 19 percent in Asia and 15 percent in Europe, the Middle East and Africa, helping Dell overcome a weak U.S. market where businesses were cutting back on technology spending. "Dell did relatively well, but it was against low expectations," said Shaw Wu, an analyst with American Technology Research who rates the shares "neutral." They rose 12 cents Thursday, closing at $21.81 in regular trading before the results were released, then jumped $2.16 to $23.97 in late trading. Still, the results added to the sense that technology spending "is turning out a little better than expected," Wu said.

Associated Press

Posted by | Fri, May 30, 2008 - 03:21 AM