Feeds

Dell stands firm on revenue outlook

Double digit growth

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Despite tough conditions for corporate IT spending, Dell said its Q1 outlook has not weakened, with revenue still expected to rise 18 per cent to USD9.5 billion.

The company is meeting analysts in New York on Thursday but held a press conference on Wednesday where it re-iterated its guidance. Dell President Kevin Rollins said the company planned to stay firm on the outlook it provided in February.

"We're seeing double-digit year-over-year revenue growth in all regional markets and customer segments," Rollins said in a statement.

Dell expects unit volumes to rise more than 25 percent from a year ago, and earnings per share are expected to jump by more than a third to USD0.23 per share.

Although the anticipated revenues represent a rise over the previous year's first quarter for Dell, they also represent a slide of some 2 percent over last quarter, and earnings per share show no growth. In the fourth quarter ended in January, Dell reported revenues of USD9.73 billion and earnings per share of USD0.23. The slide is not unexpected, as the spring quarter is typically weaker than the quarter preceding.

Rollins said on Wednesday that Dell is confident about Dell's prospects for growth, particularly because enterprise customers increasingly prefer standards-based servers based on Linux over proprietary systems. Dell said 90 percent of companies are expected to be using some kind of open-source software by 2004.

Rollins said that trend is also reaching into data storage -- Dell has strongly accelerated its sales of storage equipment following a strategic pact with industry powerhouse EMC.

Speaking to journalists at the conference, CEO Michael Dell noted that technology spending is unlikely to return to the boom years of the 1990s, but Dell should still benefit from the move to open standards and from its own low cost base.

Oracle boss Larry Ellison was also on hand at the conference, where the two companies said they would expand their strategic and sales alliance. Already the companies have a sales agreement in the US for Oracle 9i Database and Application Servers, and the deal will now be expanded to Europe and Asia.

The companies are also introducing "low-cost" server and storage clusters (starting at USD18,000) using Oracle 9i Database for both Linux and Windows, and the two companies will also work together to offer professional services to clients. © ENN

Related story

Dell promotes Linux clusters... again

Providing a secure and efficient Helpdesk

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
DOUBLE BONK: Testy fanbois catch Apple Pay picking pockets
Users wail as tapcash transactions are duplicated
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.