Dell reports that revenues for the quarter were $1.69 billion, a 40 percent increase over the same quarter last year. Net income grew 58 percent to $103 million over the period last year. After posting a one-time charge of 10 cents per share, or $173 million to retire some senior notes and repurchase shares, the investors will see earnings of 66 cents per share.
The PC maker also saw the largest second-quarter U.S. growth over the period last year among all other manufacturers, according to Dataquest. Dell's growth of 76.2 percent for the quarter was more than twice that of the number-two company for that category, IBM, and more than ten times that of market leader Compaq Computer.
Executives at Dell attributed the results on a concentrated effort to reduce inventory levels and quickly incorporate low-cost components. As a result of these measures, gross margins were up to 22.1 percent, an increase of 2.6 percent. Dell also said that sales in Europe grew by 35 percent, and that in the United Kingdom sales grew by more than double the market's overall rate.