San Francisco, Aug 28 (DPA) US computer maker Dell reported a 23-percent drop in second-quarter profits Thursday as corporate spending continued to lag.

But the earnings of $472 million on sales of $12.76 billion narrowly beat Wall Street expectations, and the Texas-based company said that its prospects for recovery were improving.

'If current demand trends continue, we expect revenue for the second half of the year to be stronger than the first half,' chief executive Michael Dell said.

In the same quarter last year, Dell booked earnings of $616 million on revenue of $16.4 million. The world's number-two computer maker has been especially hard-hit by the fall in corporate spending because business customers account for 80 percent of its revenue.