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Dell is starting to show signs of a turnaround after the closing bell, the PC maker posted better than expected results for its second quarter.

That's right. Alice ,bussiness editor Eunice Yoon joins us now with more on that and is this the Michael Dell fables driving the profit here?

Well, the drive, what's driving the profit is better sales of servers, as well as storage systems, and also they are benefiting from lower component costs,components being memory chips, disk drives that are in your computers. Now that of course is helping to boost the earnings by 46% and the revenues were also higher at 14.8 billion dollars, and of course all of this is very positive for Dell, coz as you guys know Dell has been, has fallen on very hard times, last year they had a deal with a massive battery recall, also they had been in the midst of a year-long accounting probe which has led to a shakeup of their management the CEO, Kevin Rollins who is now the former CEO was given a boot. And Michael Dell ended up coming in to try to take the helm.

The calvary, going back here.

Yeah. Do you think this turnaround is sustainable though and any chances it might overtake HP at any point?

Oh, man. That’s, I think that's really early to say, too early to say. But Michael Dell himself said that right now, they are really at a too earlier stage to be able to say exactly what they are going to do of course they have set out achievable targets, and they really hope to reclaim that proposition. But what people are saying is that you have to give them a little bit of time, in order to reach those targets because they are trying to do their best, I mean they shed thousands of jobs. They have also had to deal with many production delays especially with their new line of color computers. But one of the things that is, is a positive sign is that this is the second quarter in a row that they have been able to report better-than-expected results.

It's intrigue, I guess the great unknow here is the state of the economy, and more and more people are talking about perhaps a recession even in the second half in the US. So what is the outlook for the PC industry for the second half? What do they say?

Well, Dell is saying that they see the costs of components, like, starting to slow like at the rate at which they, you know, coz right now they are benefiting, because they are so cheap. But they are actually probably going to be declining at a slower pace so that could hurt the profits at Dell, as well as at HP and some of the other computer makers. So one of the thing, things though that people are watching, is its relationship now with Wal-mart. Because as your guys know, Dell, has, you know, really made a name for itself because of its direct sales model, you know they, you could call them up ,you could buy a computer on the Internet,and that's really what gave them that number one position but they lost it to HP at least around the world because so many people would buy HP computers in the stores. And so they wanna see, so a lot of analysts wanna see how this relationship works out.

Notes:
Give someone a boot: dismiss, fire someone