The world's second largest personal computer maker, Dell Computer has announced an increase in its earnings and revenue estimates for the second quarter.

It said it now predicted revenue of $8.3bn (£5.35bn) for the three month period ending on 2 August, compared with a previous estimate of $8.2bn.

And it said earnings per share should now reach 19 cents per share, up from its previous guidance of 18 cents.

The company said it was continuing to gain market share from competitors, despite sluggish demand for personal computers.

Shares boost

The news prompted a rally in its share price in after-hours trading.

Dell's stock climbed to $25.37, after having closed at $23.93 in Thursday's regular trading session.

In May this year, Dell announced a smaller-than-expected fall in profits for the first three months of the financial year, with profits slipping to $457m compared with $462m a year earlier.

At the time the company said it was optimistic about its future prospects.

Second place

Dell has pursued an aggressive price strategy to win market share from rivals.

But the company no longer holds the title of the world's largest personal computer maker.

It lost this position following the takeover of Compaq Computer by Hewlett-Packard earlier this year.