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Dell's profit machine keeps cranking in Q2

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Dell continued to outpace rivals with another strong showing in its second quarter.

Dell reported net income of $621 million on revenue of $9.78 billion for the period ended Aug. 1. These totals compare to net income of $501 million on revenue of $8.46 billion in the same quarter a year ago.

The company traced the strong growth to solid server and storage system sales. Total product shipments were up 27 percent year-on-year with sales surging in the Asia-Pacific region and EMEA. Higher memory prices did not appear to affect Dell as much as hardware rivals in the quarter.

Dell is looking for revenue of close to $10.5 billion in its third quarter.

Dell has faired better than other hardware makers such as HP, Sun and IBM during the economic downturn. Customers with tight budgets have tended to purchase smaller, low-priced systems, which plays right into Dell's strategy.

Shares of Dell rose slightly ahead of the earnings report to a close of $31.43. ®

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