Dell booms in record Q3

Disciplined and rolling in cash

Dell's third quarter earnings results proved duller than its products. The company produced record revenues yet again.

Dell bagged $12.5bn worth of gross revenue in the period - an 18 percent rise over the same quarter a year ago. Dell's net income came in at $846m in the third quarter, beating out the $677m reported last year. Earnings per share were up as well to $0.33 from $0.26. Add to this $1.8bn in cash generated during the three months, and Dell is sitting pretty as usual.

"Dell's disciplined focus on profitable growth around the world and across businesses continues to differentiate us in the market," said CEO Kevin Rollins. "We've been doing that for years."

The Round Rock Express did well across the globe during the third quarter. Sales in the US were up 20 percent, sales in EMEA were up 27 percent and sales in Asia-Pacific were up 25 percent. The company enjoyed particular success with its notebooks shipments, which rose 35 percent year-over-year. Funny enough, Dell had an extensive deal on during the later part of the quarter that offered four different laptops for just $750. Shipments for all products surged 22 percent.

Executives added that component costs - particularly low disk drive prices - helped it out in the third quarter. Dell is seeing less consumer and government spending this year but more dollars coming its way from large businesses.

In the fourth quarter, Dell will release a new line of blade servers. Chairman Michael Dell said, during a conference call, that the systems will be about a third thinner than typical 1U servers and ship at a lower cost Dell expects fourth quarter shipments to rise close to 20 percent year-over-year and for revenue to come in at $13.5bn.

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