TECHNOLOGY - Aug. 14, 1996

Dell Reports 58% Jump in Profit: Shattering Wall Street’s expectations, Dell Computer Corp. said its second-quarter profit soared as it continued to grow substantially faster than the overall personal computer industry. Austin, Tex.-based Dell earned $103 million, or $1.05 per share, in the quarter ended July 28. Analysts had expected a profit of 85 cents per share. Dell’s per-share profit was reduced 10 cents by a charge for the retirement of some debt. The company earned $65 million, or 66 cents per share, in the same period a year ago. Chief Executive Michael Dell said his company “excelled in every measure of performance this quarter.” Dell and Gateway 2000 Inc., which both sell PCs directly to customers through phone orders instead of relying on distributors, have been growing strongly as PC users become comfortable ordering computers sight-unseen. For the first six months of its year, Dell earned $185 million, or $1.89 per share, up from $127 million, or $1.22, a year earlier.