earnings of $289 million, or 11 cents a diluted share, down 25 percent from $384 million, or 14 cents a share, in the period a year earlier. Sales rose 41 percent, to $6.78 billion from $4.82 billion. The results reflect a charge of $194 million associated with the purchase of ConvergeNet Technologies.
Without the charge, Dell earned $483 million, or 18 cents a share, matching analysts' estimates, according to First Call/Thomson Financial, which tracks company earnings. Analysts said the only negative in the report was that revenue growth of 41 percent trailed shipment growth of 59 percent, suggesting that average selling prices have come down, possibly because Dell is selling a higher percentage of consumer machines, which have
lower prices than servers or notebook computers do.