Dell Q3 Sales Surge Across The Board, Earnings Jump


Dell on Thursday reported solid quarterly revenue growth, with nearly 150 percent growth in earnings, thanks to strong global demand for its entire commercial portfolio of products and services as well as solid supply-chain execution.

For its 2011 third fiscal third quarter, which ended October 29, Dell reported revenue of $15.4 billion, up about 19 percent from the $12.9 billion the company reported for its 2010 third fiscal quarter.

Dell also reported income of $822 million, or 42 cents per share, up over 140 percent compared to last year's $377 million, or 17 cents per share.

Dell's server and networking business rose by 20 percent over last year to $1.8 billion. Its storage revenue was up 7 percent to $543 million, software and peripherals up 8 percent to $2.6 billion, mobility products up 16 percent to $4.9 million, and desktop PC business up 21 percent to $3.6 billion.

Dell also reported services revenue as up by 55 percent to $1.9 billion. However, that growth ignored the third quarter 2009 revenue of Perot Systems, which Dell acquired in the fourth quarter of 2009. If Perot's third quarter 2009 revenue was included, total services revenue growth this year would have been a much more modest 3 percent.

Dell's large enterprise business revenue rose 27 percent compared to last year to reach $4.3 billion. That included a 25-percent increase in enterprise solutions and services revenue over last year.

The company's public revenue, the vast majority of which came from the U.S., rose 20 percent to $4.4 billion, while small and medium business revenue rose 24 percent to $3.7 billion and consumer revenue rose a modest 4 percent to $3 billion.

Growth in the SMB part of its business came in part because of the continuing strength of Dell's direct sales model, said Stephen Felice, president of Dell's consumer and small and medium business.

"Our direct model gives us an advantage in the midmarket, and our clients regard us as a trusted advisor," Felice said.

A combination of direct and partner sales is helping propel Dell's growth in the enterprise market, said Michael Dell, chairman and CEO of the company which bears his name.

"Our PC and solutions portfolio continues to grow, as does our field and partner ability to deliver these solutions around the world," Dell said. "We believe we're well positioned to profitably grow."

 

Next: Storage Continues To Be A Highlight