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Dell sees profits increase 52%, analysts still unhappy

Dell, the third-largest PC maker in the world, showed strong growth in Q1 of 2010 as profits totaled $441 million — or $0.22 per share — up 52% from a year ago. Revenue climbed 21% (to $14.9 billion) from the previous quarter thanks to a 21.4% increase in PC shipments; a spike which Dell attributed to, “the early stages of a corporate IT refresh.” Dell also saw a boost from server and network revenue (up 39% to $1.8 billion), mobility revenue (up 18% to $4.6 billion), and desktops sales (up 13% to $3.6 billion). Even with all this this great news Dell’s stock price dropped 5.2% in after hours trading as both the earnings per share figure and gross margin figure fell short of The Street’s expectations.