Summary Box: Dell earnings jump 52 percent on PC sales, but gross margin sinks
By APThursday, May 20, 2010
Summary Box: Dell earnings up, gross margin falls
COMPUTER COMEBACK: Dell Inc.’s net income jumped 52 percent in the February-April quarter, and revenue rose 21 percent, a sign businesses are finally replacing aging PCs with new ones.
PROFITABILITY PROBLEM: Investors were disappointed that Dell’s gross margin — the percentage of revenue left after subtracting the cost of making products — was lower than a year ago, hurt by rising PC component prices.
LOOKING AHEAD: Dell says it expects revenue to rise slightly in the current quarter, a time when businesses don’t typically spend a lot on technology.
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