Dell still profitable, just

Dell has reported profits for its fourth quarter, but only just. The company did better than expected due to corporate sales of storage and server products.

Revenue for the quarter ended 3 February was $15.2bn, up 13 per cent from $13.5bn the previous year. Net income was $1bn, up 52 per cent from $667m last year.

Earnings per share of 43 cents beat Wall Street's expectations of earnings of 41 cents a share on revenues of $14.83bn.

"We now have excellent balance, and the focus is on our enterprise products, " Dell chief executive Kevin Rollins said in a conference call following the earnings announcement.

Dell's storage business was its fastest-growing segment during the fourth quarter, at 41 per cent growth in revenue. Services revenue grew 26 per cent.

The firm has been trying to change its perception as a low-cost PC manufacturer over the past year to that of an enterprise IT vendor that can offer everything from notebooks to storage area networks.

Services and storage still represent only 12 per cent of the company's overall revenue, but are gaining ground on its other businesses.

The growth in the company's XPS line helped it improve the margins of its PC business during the quarter, which was a priority coming off the last operating period, Rollins said.

Responding to suggestions that Dell no longer appeared to be growing faster than rivals such as HP, Rollins said: "It doesn't seem like we're in the pack at all. We intend to grow and take share as we have historically."

Sales are likely to expand by between six and nine per cent in the latest quarter, the company indicated.