Hopes dashed of ‘big bang’ rebound
“Corporations are upgrading their PCs, but it’s not a big bang upgrade on a particular day,” said Mr Dell.
“It’s happening quarter by quarter,” he added.
Investors have been looking for signs of a rebound in PCs, which Dell had once predicted would occur a year ago.
Mr Dell yesterday reiterated a comment he first made at the company’s annual shareholder meeting last month that corporations need a couple of more quarters of improving profits before they boost expenditures on computers and related technology.
“There’s increased optimism among CEOs and large companies, but I don’t want to characterise it too strongly,” said Mr Dell.
“It’s incrementally improving.”
Dell Computer employs 4,300 people in Limerick and Bray.
Dell posted strong results for the second quarter. Revenue was up 16% to $9.8 billion with earnings per share at 24 cents, up 26%. Net profits were up 24% to $621m. Shipments to Europe, the Middle East and Africa increased by 31%, with sales of servers particularly strong.
The company’s general manager for sales in Ireland, Tim McCarthy, says there is increased optimism about a recovery in the information technology sector.
He says Dell has reported a 31% increase in shipments in Europe, while the market as a whole grew by just 12%. He also said the Limerick plant was Dell’s most efficient manufacturing facility in the world.
