Dell Computers' revenues were higher than expected for its third fiscal quarter following earlier warnings that sales would be affected by the Taiwan earthquakes.
Turnover rose 41 per cent to $6.78 billion, while profits before charges of $194 million or $0.07 per share related to the acquisition of Convergenet Technologies, were $483 million or $0.18 cents per share compared with $384 million or $0.14 cents per share in the same period last year.
While earnings were in line with the First Call analysts' consensus estimate, industry watchers had been guided to expect lower profits in October because of the rise in memory chips prices.
Dell said the cost of the chips more than doubled in the quarter, with price increases of 25 per cent witnessed during the last few weeks of October alone.
But analysts were pleased with the quarter and Michael Dell was upbeat about prospects for the direct PC supplier going forward.
He said: "We expect that the fourth quarter is going to be a healthy one," and added that he did not think the Year 2000 issue would impact businesses any longer.
"We are more and more comfortable with it as every day goes by. There seems to be a group of customers that are buying at a more intense level," he claimed.
Although he did not break out European sales figures, Dell added that the firm had solidified its position as the number two PC supplier in the region, with a revenue increase of 22 per cent year on year.
In Asia Pacific, growth rates were at 69 per cent, while the US saw a 45 per cent boost. Dell share price rose to $44 7/8 from $43 1/2 following the announcement.
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