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Last Updated: Thursday, 11 August 2005, 21:56 GMT 22:56 UK
Strong demand boosts Dell profits
Dell laptop
Analysts were not impressed with Dells forecasts for coming months
The world's largest personal computer maker Dell has unveiled a rise in earnings, thanks to demand for laptops.

The US group said net profits for the three months to 29 July surged 28% to $1.02bn (563m), or 41 cents per share, against $799m a year ago.

Strong demand helped Dell achieve what it called "industry record" shipments of 9.1 million computer systems.

It also racked up a company record of more than $2bn in revenues for software and other products such as printers.

"While average selling prices were down more than we would have liked, we focused on balanced profitability and, in the process, delivered to our guidance for EPS (earnings per share)," said chief executive Kevin Rollins.

But shares in the group sank more than 7% in after-hours trade as it forecast lower than expected growth for the current third quarter.

The company warned weak government demand and low consumer business were likely to take their toll, leading to predictions of revenues of between $14.1bn and $14.5bn.

Commentators had expected the group to forecast revenues of at least $14.6bn for the period.

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