Feeds

Dell rides enterprise to 22% revenue jump

But margins shrink

Choosing a cloud hosting partner with confidence

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. ®

Intelligent flash storage arrays

More from The Register

next story
All aboard the Poo Bus! Ding ding, route Number Two departing
Only another three days of pooing and I can have a ride!
Ford's B-Max: Fiesta-based runaround that goes THUNK
... when you close the slidey doors, that is ...
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.