Dell Profit More Than Doubles

Dell Computer Corp. said fourth-quarter earnings more than doubled, far exceeding estimates, as the company exploited strong demand to cut prices and increase revenue by 57%. Net income rose to $188 million, or $1.01 a share, from $69.8 million, or 35 cents, in the year-earlier period. Sales at the Austin, Texas-based personal computer maker rose to $2.41 billion in the quarter ended Feb. 2, from $1.54 billion in the year-earlier quarter. Dell’s results far exceeded Wall Street expectations of 83 cents a share. Dell shares rose as much as $2 to $74.125 after the close of trading on Nasdaq. The shares fell 87.5 cents to $72.125 before the earnings were released. The company surprised analysts primarily because it took a calculated risk and cut prices.