Dell profit falls, but beats estimate

By Bill Rigby

SEATTLE (Reuters) - Dell Inc, the world's No. 2 PC maker, narrowly beat analysts' expectations for sharply reduced profit on Thursday, even as the global downturn hit technology spending, helping its shares rise after hours.

The company gave little comfort to investors looking for signs of a quick turnaround, saying there was not enough momentum in the PC market to call a bottom yet. But it held out hope for a surge in sales next year as corporations replace their computer systems.

Dell did not give any detailed financial outlook. Last week, larger rival Hewlett-Packard Co, which also reported lower quarterly profit, forecast a 4 percent to 5 percent dip in fiscal year revenue.

Dell said net income fell to $290 million, or 15 cents a share, in the fiscal first quarter ended May 1, from $784 million, or 38 cents a share, in the year-ago period.

Excluding certain one-time restructuring costs, the company posted a profit of 24 cents a share, just beating analysts' average estimate of 23 cents a share, according to Reuters Estimates.

Revenue fell 23 percent from a year ago to $12.3 billion, versus Wall Street's estimate of $12.7 billion. Dell's global PC shipments fell nearly 17 percent in the first calendar quarter, according to data firm IDC.

Shares of Round Rock, Texas-based Dell rose 1.4 percent in extended trading after closing up 3.2 percent at $11.48 on Nasdaq.

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