Feeds

Dell profit improves amid accounting woes

And ex-CEO grabbing bank

3 Big data security analytics techniques

Dell posted healthy sales and profit for its fiscal second quarter, spurred by favorable market conditions, including higher average selling prices and lower component costs.

Operating income for the quarter ended August 3 was $896m. Net income was $733m. The results took a hit big from $102m in expenses related to payments for expired stock options — with over $48m of that amount for ousted Dell CEO Kevin Rollins as a parting gift. The company also payed $59m for costs relating to its accounting investigation.

Net revenue totaled $14.8bn, up five per cent from the same period last year (although the comparison warrants caution, as Dell has yet to restate its 2006 financial reports).

"While our results demonstrate we've made progress against our goals, we are still in the early stages of transforming our company's structure, costs and operations," said CEO Michael Dell in a statement.

Strictly speaking, the quarterly results aren't official. Dell has labeled the numbers merely as "preliminary," due to plans to restate four years of financial data following an internal investigation of accounting practices. The year-long inquiry had found company executives cooked the books to meet quarterly sales goals. Since the investigation, Dell has also stopped giving financial forecasts into the next quarter, although it cautioned: "Near-term results could be adversely impacted by a slower decline in component costs in the second half of the year."

A breakdown of Dell's net revenue for the quarter is as follows:

Percentage of net revenue

Product Net revenue Percent
Desktop PCs $5bn 34%
Mobile PCs $3.9bn 26%
Servers and Networking $1.6bn 11%
Storage $0.6bn 4%
Enhanced Services $1.3bn 9%
Software and Peripherals $2.4bn 16%

Year-over-year, Dell's revenue from PC sales rose 2 per cent from $4.9bn. Notebook sales revenue rose 5 per cent from $3.7bn. Storage revenue increased 17 per cent from $500m the previous year. Services revenue slowed by seven per cent from $1.4bn. Software and peripherals revenues rose nine per cent from $2.2bn the previous year.

Dell's notebook operations suffered a considerable shipment backlog for its colorful Inspiron and XPS notebooks introduced in June, due to a tight supply of flat-panel displays and a manufacturing problem with the paint jobs. The company expects the supply environment will improve in the second half of the year.

Final results will be filed in the first week of November, Dell said. During that time, the company also expects to file revised reports for fiscal years 2003, 2004, 2005 and 2006 with the SEC. ®

SANS - Survey on application security programs

More from The Register

next story
This time it's 'Personal': new Office 365 sub covers just two devices
Redmond also brings Office into Google's back yard
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
Amazon reveals its Google-killing 'R3' server instances
A mega-memory instance that never forgets
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
prev story

Whitepapers

Designing a defence for mobile apps
In this whitepaper learn the various considerations for defending mobile applications; from the mobile application architecture itself to the myriad testing technologies needed to properly assess mobile applications risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.