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Dell Expects to Beat Sales Forecast in First Quarter

April 04, 2002|From Bloomberg News

Dell Computer Corp. said Wednesday that fiscal first-quarter sales will exceed forecasts and profit will meet targets, as the world's biggest personal-computer maker wins business from rivals and reduces costs.

Revenue in the period ending May 3 will be about $7.9 billion. Dell in February said it would earn 16 cents a share on sales of $7.65billion to $7.82 billion.

Chairman Michael Dell has predicted that corporate PC sales will revive in the second half. To compensate for the slump, the PC maker has focused on consumers. In a meeting with analysts in New York today, Dell will outline plans to boost sales of more profitable corporate computers, such as servers and storage devices.

"This is very positive for Dell, but I would be cautious about extrapolating that to the rest of the industry," said James Lyon, a portfolio manager at Oakwood Capital Management, which owns 136,000 Dell shares and manages $375 million in assets.

Dell shares rose as high as $27 after the revised forecast. They fell 38 cents to $26.19 in regular trading before the announcement.

Analysts polled by Thomson Financial/First Call on average expect earnings of 16 cents a share on revenue of $7.7 billion.

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