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Business Sales Drives Dell (Nasdaq:DELL) Profits Up 52 Percent


Friday, May 21st, 2010
News

Businesses helped Dell (Nasdaq:DELL) increase earnings for the last quarter by 52 percent, while revenue rose by 38 percent.

Most of the revenue was generated from storage, servers and services Dell sold to businesses, although all customer segments enjoyed sales growth for the quarter.

Net income for their fiscal quarter grew to $441 million, or 22 cents a share, up in a big way from the $290 million, or 15 cents a share they produced last year in the same quarter.

On an annual basis, revenue surged 21 percent to $14.9 billion, up from $12.3 billion last year.

Last year Dell was hit hard by a decrease in computer sales to businesses, not able to keep up with their competitors, who performed better because of sales to consumers.
 
As mentioned above, all segments were up for the quarter, let by large business, which increased 25 percent; government, which increased 22 percent; small and medium businesses were up 19 percent; and consumers sales grew 16 percent.

Dell's guidance is they estimate sales for the second fiscal quarter will continue to rise with consumers, business and education. Revenue in the second fiscal quarter is projected to increase in the low single digits said the computer maker.



Article by Gary B

The views expressed are the subjective opinion of the article's author and not of FinancialAdvisory.com



Tags: business computers , dell computer , quarterly results , servers