Dell setting pace, CEO says

Dell reports that profits for the third quarter nearly doubled.

CNET News staff
Dell Computer (DELL) today reported that profits for the third quarter nearly doubled, as the company placed a tighter reign on expenses. The computer maker reported net income of $145 million for the quarter ending October 27, up 92 percent from a year ago.

Revenues, meanwhile, climbed to $2 billion, up 43 percent from the same period a year earlier. The reporting period also marked the 11th consecutive quarter the company has posted revenue growth. Dell also improved its inventory level 68 percent by turning around its stock on hand every 12 days.

In other developments, Dell announced that its board of directors authorized the company's third stock split in the last five years. The two-for-one stock split will be issued December 6 to shareholders of record as of November 25.

"During our third quarter, we achieved a 111-percent return on invested capital, which is the highest level in the industry," said Michael Dell, chairman and chief executive officer, in a statement. "For the past three years we have structured our strategic business decisions around this key measurement of shareholder value, which others in this industry now are beginning to adopt."