Dell reported lower-than-expected quarterly profit margins last night and warned that rising costs could depress future results.
While the world's second-largest personal computer maker earned more revenue than expected and booked 27 per cent profit growth, its shares fell 10 per cent.
Chief Executive Michael Dell, leading a restructuring of the company he founded, spoke of "winds of caution in certain financial customers" despite good demand overall.
Net income for its fiscal third quarter ended November 2nd grew to $766 million, or 34 cents per share, from $601 million, or 27 cents per share, a year ago. The gross profit margin slipped to 18.5 per cent from 19.9 per cent the quarter before.
Revenue rose 8.5 per cent to $15.65 billion.
Dell booked costs of $50 million, or 2 cents per share, related to job cuts and asset disposals, plus $28 million, or 1 cent per share, for a year-long accounting audit.
Laptop computer revenue rose 19 per cent to $4.7 billion, while desktop revenue fell 1 per cent to $4.8 billion.