Dell Computer marked its eleventh consecutive quarter of record revenues by reporting third quarter profits of $145 million, a 92% increase on the same period last year.
Sales of $2 billion (u1.25 billion) for the three months ended 27 October, 1996 were 43% up on the 1995 third quarter. Server sales during the quarter were particularly strong, up 44% on the second quarter, while notebook sales rose by 40%.
"We've made excellent progress in the $10 billion network server market," commented Michael Dell, the company's chief executive officer.
"We are maintaining an aggressive pricing strategy, which is already paying dividends. With our new product offerings and the advantages of our direct business model, the company is very well positioned to capture an increasing share of this important market."
In Europe, sales were up 41% to $482 million. But Mike Newton, Dell UK managing director, struck a note of caution, warning: "I'm thrilled with these results, but there's no room for complacency. We will have to keep on in the same way."
He attributed the results to the company's direct business model. Newton said Dell shipped as many PCs in the third quarter as Compaq did in the same quarter last year. "We concentrate on what the customer wants and don't hold large inventory," he said.
The company also announced a two-for-one stock split, payable in December, on shares purchased by 25 November. As of 27 October, Dell had 94 million shares outstanding, of which 6 million are held by the company.
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