Dell Computers last night said quarterly profit rose and that it would meet analyst expectations for the first quarter despite competition and a possible US war with Iraq.
Shares of Dell - which have fallen during the past few weeks on investor concerns the number two personal computer maker would offer a downbeat view of 2003 - gained about 4 per cent in after-hours trading.
Dell, which employs 5,000 people in Ireland, has sidestepped the brunt of the technology downturn, taking market share from rivals including Hewlett-Packard and moving into new markets such as data storage systems and handheld computers.
Dell said shipments of personal computers, computer servers, data storage systems, and other items increased 25 per cent during the quarter, with China, France, Germany and Japan up 39 per cent in total.
The company has kept costs low by selling directly to customers and keeping inventory down, enabling it to cut prices quickly when the costs of components decline or to respond to competitors.
Nonetheless, Dell has little hope for an improved economic environment this year, saying only that demand is stable. It said it sees first quarter sales dropping 3 per cent from the fourth quarter - traditionally the strongest of the year.