Feeds

Dell rides enterprise to 22% revenue jump

But margins shrink

Application security programs and practises

Dell revenues climbed 22 per cent to $15.5bn in the quarter ending July 30, thanks largely to increased demand among corporate customers.

Commercial business revenue increased 28 per cent to $12.7bn during the company's fiscal 2011 second quarter, and servers, storage and services revenue jumped 43 per cent to $4.3bn.

This translated to a 16 per cent jump in overall profit. “We continue to strengthen our portfolio of data center solutions at an aggressive pace with the addition of key IP, talent and technology," read a canned statement from Michael Dell.

"This quarter’s results are a strong reflection of the progress we’ve made, and we remain very focused on delivering the best possible solutions and services to meet our customers’ IT needs.”

But the company's gross margin — the per centage of revenue the remains after subtracting the cost of building its products — fell to 16.6 per cent, compared with 18.7 per cent during the same quarter last year. This is typically a key indicator of the company's health, and following its earnings announcement, Dell's share price fell more than one per cent in after hours trading.

The announcement comes just days after 25 per cent of Dell's stockholders withheld votes to re-elect Michael Dell to the company's board. Last month, both Dell the company and Dell the man settled US Security and Exchange Commission charges they failed to disclose information to investors and used fraudulent accounting practices to give the false impression they were meeting Wall Street earnings targets.

Dell's consumer revenue was flat during the quarter, coming in at $2.9bn, while large enterprise business jumped 38 per cent to $4.5bn and small and medium sized business revenue was up 25 per cent to $3.5bn. ®

The Power of One Infographic

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
You didn't get the MeMO? Asus Pad 7 Android tab is ... not bad
Really, er, stands out among cheapie 7-inchers
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
BEST BATTERY EVER: All lithium, all the time, plus a dash of carbon nano-stuff
We have found the Holy Grail (of batteries) - boffins
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Microsoft confirms secret Surface will never see the light of day
Microsoft's form 8-K records decision 'not to ship a new form factor'
prev story

Whitepapers

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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.