Feeds

Dell beat itself in the first quarter

We'll print HP into submission

  • alert
  • submit to reddit

Providing a secure and efficient Helpdesk

Dell today posted strong first quarter results, showing gains across all product lines and geographies.

Dell's performance has started to become a bit ho-hum with the company consistently growing faster than rivals. For the first quarter, Dell reported revenue of $11.5bn - a 21 percent year-over-year gain. This total beat out Dell's own guidance, provided last month, of $11.4bn in revenue for the period. Dell patted itself on the back for this achievement.

"The company has now met or exceeded guidance to investors for 13 straight quarters," Dell said in a statement. Why companies consider it a stunning success to beat out their own, conservative guidance, we'll never know.

Dell posted earnings of $731m in the quarter - 22 percent higher than last year's total of $598m. Earnings per share hit 28 cents versus 23 cents last year.

"In our industry, only Dell simultaneously creates great customer value, rapid growth and solid profitability," said Kevin Rollins, Dell's president and chief operating officer. "Others sometimes do one or two of those things. Our global team and our shareholders insist on all three."

Go on, don't be modest.

Overall, Dell saw product shipments rise 25 percent year-over-year. The company enjoyed 38 percent growth in the Asia/Pacific region and 37 percent growth in EMEA. The US market grew at a slower 18 percent clip. On the product front, Dell posted 24 percent growth in server units shipped, while storage revenue grew 25 percent. Desktop sales rose 21 percent, and notebook sales rose 39 percent.

But Dell's favorite category to talk about is printers. "Printers are the fastest growing product line in Dell history," Rollins said.

In one year, Dell has managed to capture 10 percent market share of inket printers and "upper teens" share in all-in-one printers. Dell, of course, loses some of this revenue to partner Lexmark, but overall this growth is a big win against HP. Rollins said he expects HP to lower prices to compete against Dell. Dell's software and peripheral business, which includes printers, grew revenue 39 percent. The company already sells printers in the US, Europe and Australia and plans to start selling product in Japan next quarter.

Dell warned that memory prices could hurt it in the coming quarter. In addition, Dell said that flat panel supplies were tight. For the second quarter, Dell expects products shipments to increase 24 percent, leading to revenue of $11.7bn. ®

Related stories

PalmOne shares soar on Dell purchase rumour
Dell donates 100 clunkers to Operation Homelink
Foreign workers dominate Dell
Dell ups Q1 forecast on overseas boom
Dude, you're getting a Dell - Oracle bundle

Beginner's guide to SSL certificates

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
DVLA website GOES TITSUP on day paper car tax discs retire
Welcome to GOV.UK - digital by de ... FAULT
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
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.