Dell posted a better-than expected quarterly profit last night, crediting cost cuts and new products, sending its shares up 9 per cent.
Dell was facing subdued expectations for the October quarter. The company warned in September, just weeks after reporting second-quarter results, that it was seeing "further softening" in global demand.
Net profit in the fiscal third quarter ended October 31st fell 5 per cent to $727 million, or 37 cents a share, from $766 million, or 34 cents a share, in the year-ago period. Per share earnings rose as Dell bought back shares.
The average analyst estimate was 31 cents a share, according to Reuters Estimates.
Revenue in the period fell 3 per cent to $15.16 billion, below the average analyst estimate of $16.3 billion, according to Reuters estimates.
The company said in a statement that it believes global IT demand will continue to be "challenging."
"The company will continue to incur costs as it realigns its business to improve competitiveness, reduce headcount in certain areas and invest in infrastructure, growth opportunities and acquisitions," it added.
Dell has been shedding jobs, cutting costs and retooling its business to adjust for slower demand. It has nearly completed its plan to cut 8,900 jobs.
The company's share of global PC shipments slipped below 14 per cent in the calendar third quarter, according to industry tracker IDC.
Dell shares are down around 60 per cent this year, at levels not seen in a decade.
Reuters