Dell Reports Higher Profits and Sales From Retail Push
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Dell Inc. reported higher profit and sales helped by a push into retail stores and some favorable trends, including higher average selling prices and lower computer component costs.
Net income for the fiscal second quarter was $733 million, or 32 cents a share. The latest results included $102 million, or three cents a share, in expenses related to payments for expired in-the-money stock options and a $59 million charge, or two cents a share, related to the costs associated with an accounting investigation. Revenue was $14.77 billion. Last year, Dell reported net income of $502 million, or 22 cents a share on sales of $14.09 billion. However, the company has said it plans to restate more than four years of financial reports and the latest figures are preliminary.
The report comes during what has been a turbulent year for the company. Dell has shuffled its top executives, announced plans to cut about 10% of its work force, and has been the subject of a Securities & Exchange Commission investigation.
