Dell has seen sales growth in its PowerEdge servers

It put it down to improved corporate spending on technology and consumer buying during the holiday season.

The US company, based in Round Rock, Texas, said revenue increased to $11.51 bn, in line with expectations, and up from $9.74bn on the previous year.

Dell has lost its spot as the number one PC maker to Hewlett-Packard.

Shares down

The company highlighted growth in its PowerEdge servers, which rose 40% from the year-ago quarter, while revenue from storage products was 47% higher.

Dell's president and chief operating officer, Kevin Rollins, said the company expects first-quarter revenue of $11.2 bn.

The figures are in line with previous estimates from Wall Street analysts.

Dell's shares fell 41 cents to $33.16 in after-hours trading, after closing the regular session at $33.57, down 12 cents.

Prices slashed

Dell has expanded into printers, data storage systems, and cash registers in recent years.

In September it announced plans to take the process a step further by launching its own digital music players and TVs.

Dell slashed PC prices in August in hopes of stimulating sales.

Dell specialises in selling inexpensive PCs by shipping direct to consumers, cutting out the retailer.