Dell Computers Astounds With Positive Profit Report

Beating Wall Street expectations, Dell Computer Corp. Tuesday reported a 170 percent jump in quarterly profits amid sharply higher sales of the company’s line of computers.

Dell said it earned $188 million, or $1.01 per share, in its fiscal fourth quarter ended Feb. 2. That was up from profits of $70 million, or 35 cents per share, in the year-earlier period.

Revenues grew 57 percent to $2.41 billion from $1.54 billion.

Dell’s earnings per share in the quarter easily exceeded Wall Street forecasts of about 83 cents per share. Dell’s stock, which closed at $72.12-1/2 Tuesday, shot up more than $1 per share in after-hours trading. The stock closed Friday at $71.12-1/2, up $1 after dropping $5.62-1/2 on Thursday.

Dell cited stronger sales of its computers to businesses in the United States and abroad, including growing sales to small businesses through its World Wide Web site.

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 PCs without seeing them first.

For the year, Dell earned $518 million, or $2.77 per share, or nearly double the $272 million, or $1.34 per share, earned the year before. Revenues rose to $7.76 billion from $5.30 billion.

Some of the stocks that moved substantially or traded heavily Friday:

NYSE

Healthsource, up $4 at $20.87-1/2.

The Hooksett, N.H.-based health maintenance organization agreed to be acquired by the insurance company Cigna for about $1.7 billion, or $21.75 a share, in cash.

Centennial Technologies, down 50 cents at $3.

The scandal-plagued maker of memory cards and other PC parts was to be delisted after Friday’s close. Centennial, whose chief executive has been arrested on charges of securities fraud, said Thursday it will restate its results for the past $3.50 years to reflect newly discovered losses.

General Cigar Holdings, up at $23 from initial offering at $18.

New York-based Culbro sold 6 million shares in its cigar-making unit for $108 million, or $18 apiece, the high end of the expected range of $16 to $18 a share.

NASDAQ

Collective Bancorp, down 87-1/2 cents at $41.12-1/2.

Summit Bancorp it agreed to acquire Egg Harbor, N.J.-based Collective Bancorp in an exchange of stock valued at $867 million. Princeton, N.J.-based Summit said the acquisition would give it the top market position in nine of New Jersey’s 21 counties, and one of the top three positions in 16 counties.

Intuit, down $2.75 at $22.62-1/2.

The Mountain View, Calif.-based company late Thursday reported better-than-expected second-quarter earnings but warned that slowing growth in the market for personalfinance software could hurt revenue in future quarters.

Biofield, down $5.75 at $4.75.

The Atlanta-based medical technology company said late Thursday that the U.S. Food and Drug Administration rejected its application for a new device to diagnose breast cancer.

Metrotrans, down $3 at $9.75.

The Griffin, Ga.-based tour bus manufacturer reported fourth-quarter and year-end earnings well-below Wall Street analysts’ estimates.

Heartland Wireless Communications, down $1.12-1/2 at $3.87-1/2.

The wireless cable television concern expects to report fourth-quarter results that fall shy of third-quarter levels and analyst expectations. Dallas-based Heartland said it will take steps to control expenses in an effort to improve cash flow and profitability.