Dell Again Hikes Its 3Q Forecast

AUSTIN, Texas (AP) - Growth in servers and storage-related sales at Dell Computer Corp. is expected to push third-quarter revenue past expectations to $9.1 billion, the company announced Tuesday. <br> <br> For the seventh consecutive quarter, Dell brightened its earnings outlook, saying revenue in the quarter ending Nov. 1 is on pace to be up 22 percent from the third quarter a year ago, when Dell posted earnings of 16 cents a share. <br> <br> The $9.1 billion in revenue and earnings of 21 cents per share would be a record for the Round Rock-based company. In August, Dell estimated quarterly revenue would be about $8.9 billion. <br> <br> Analysts surveyed by Thomson First Call had expected earnings of 21 cents per share on third-quarter revenue of $8.9 billion. <br> <br> Chairman and chief executive Michael Dell said consumers are happy with Dell&#39;s push to customize the company&#39;s computer systems and services specifically for them. <br> <br> Dell, best known for its personal computers, also sells servers, software and peripherals to consumers and corporate customers. <br> <br> Dell also said he expects the company to cut $1 billion in expenses. <br> <br> The company planned to share the earnings news Wednesday with analysts meeting in Austin. <br> <br> Shares of Dell were up $1.17, or nearly 5 percent, to close at $24.68 on the Nasdaq stock exchange.

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