Dell Q2 net income up 63% to $890 m

PTI New York | Updated on March 12, 2018 Published on August 17, 2011

Computer-maker Dell today reported a 63 per cent jump in net income to $890 million in the April-June quarter of 2011, driven by the strong performance of India and China.

In the corresponding year-ago period, the company had posted a net income of $545 million, Dell said in a statement.

The company’s revenues rose by a marginal 1 per cent to $15.65 billion in the second quarter of FY’12 from $15.53 billion in the year-ago period.

Dell said growth in its enterprise solutions and services business, as well as the performance of India and China, drove the company’s profitability in the second quarter.

“We continue to see great momentum in the high growth areas of our business, which is a direct reflection of the discipline and strong execution our global Dell team is applying to help solve real-world challenges for our customers,” Dell Chairman and CEO, Mr Michael Dell, said.

Dell’s revenues from India grew by 21 per cent during the period under review, while its China business saw a 20 per cent jump.

However, the uncertain demand environment has prompted the computer giant to lower its full-year revenue target.

“The company has revised its full-year revenue growth outlook to 1-5 per cent from the previous range of 5-9 per cent. In Q3, Dell expects to see revenue roughly flat relative to Q2, which is in line with seasonality over the past two years,” Dell President for Greater China and South Asia, Mr Amit Midha, said in a conference call.

In the reporting quarter, revenues from Dell’s enterprise solutions and services business rose by 4 per cent to $4.6 billion, while commercial business went up by 1 per cent to $12.8 billion.

Dell’s services revenue grew 6 per cent to $2 billion and networking and server revenue gained 9 per cent vis-a-vis the corresponding period of the previous year.

“We’re creating efficiency across every step of the IT value chain and ultimately enabling all customers — from home users to large businesses and government organisations — to achieve the outcomes that matter most to them,” Dell said.

Published on August 17, 2011
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