The world's second-biggest architect of personal computers, Dell Inc. posted higher than expected first-quarter profit on Thursday. The company announced that its net income grew 3.7% as shipment growth hit a two-year high.

Round Rock, Texas based computer manufacturer reported that the strong sales in foreign markets as well as lower costs drove a 4% rise in net income. The company revealed that its unit shipment growth surged 22.0% in the quarter.

According to Dell’s first-quarter result, Net income in the three months ended May 2 rose to $784 million, or 38 cents per share, from $759 million, or 33 cents per share, a year earlier. Revenue was $16 billion, up from $14.7 billion.

Dell also reported that its international revenue surged 20%, driven by a 47% jump in shipments. Shipments to Brazil, Russia, India and China grew 73%, leading to a 58% surge in revenue. Its Asia-Pacific and Japan revenue rose 19%, while sales in Europe, the Middle East and Africa grew 15%.

Chairman and Chief Executive Michael Dell, said, "We are executing on all points of our strategy to drive growth in every product category and in every part of the world. We expect to continue growing faster than the industry."

On Thursday, Dell shares shot up 9.5%, or $2.07, closed at $21.81. The shares changed hands at $ 23.78 in after-hours trading. The company also announced its plan to cut $3 billion in costs by 2011 and its aim to outpace Hewlett-Packard in worldwide shipments of personal computers.