Feeds

Dell profits down, hopes up

Meltdown's bottom not yet certain

Bridging the IT gap between rising business demands and ageing tools

As is true with most every tech company during the ongoing meltdown, Dell announced Thursday that its just-finished fiscal quarter saw shrinking revenues and income.

Despite some ugly numbers, the company's chairman and CEO Michael Dell predicts better days ahead - although those days may not arrive for some time.

During Dell's first quarter of fiscal year 2010, which ended May first, the company's revenue fell 23 per cent to $12.3bn (£7.7bn) from the $16.1bn (£10.1bn) it pulled in during the same period last year, and down 8 per cent from the previous quarter's $13.4 (£8.4bn).

Profits sank even more. Q1 2010 net income was $290m (£182m), down a whopping 63 per cent from the $784m (£492m) reported during the same period last year, and down 17 percent from the previous quarter's $351m (£220m).

Michael Dell, however, has high hopes for both server and client sales next year. After pointing out that his company "at last count" had a 37 per cent share of x86 server units, he reminded the analysts and reporters listening in on a conference call that although corporate sales are currently being deferred, "The thing I'm hearing is that they're planning on a pretty big 2010 client refresh."

One reason: "They're planning around Windows 7 - they passed on Vista." He believes that IT departments will focus on technologies such as virtualization, wireless, mobility, and "hoteling" - meaning providing workers with temporary workspaces at corporate sites into which they'll bring their own or company-supplied notebooks.

Dell also said that those workers will push for new machines. "Users are getting restless as their machines get to the fourth or fifth year. At home they have a brand-new product that has the latest operating system, the latest capabilities. That can't go on forever."

And although Dell's SVP and CFO Brian Gladden said "When taking the entire quarter into account, we don't think there's enough momentum to call a bottom yet," Michael Dell was clear that he's not planning to wait until that bottom is unmistakable before he gets aggressive. When asked about the company's plans for emerging markets, for example, he said, "The word that comes to mind is 'attack'."

The question, of course, remains whether those markets - primarily the "BRIC" countries of Brazil, Russia, India, and China - will have enough reals, rubles, rupees, or yuan to make that attack pay off. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.