More Good Times For Dell - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Business & Finance

More Good Times For Dell

The PC maker reported its fifth consecutive quarter of year-over-year profit improvement and said that technology demand has stabilized but not greatly improved.

Dell just keeps rolling along.

The PC maker Thursday reported its fifth consecutive quarter of year-over-year profit improvement and said that technology demand has stabilized but not greatly improved. CEO Michael Dell said the outlook among business executives is improving slightly, following a three-year slump in IT spending.

"I will certainly tell you that there is increased optimism among CEOs and large companies, but I don't really want to characterize it too strongly," Dell said during a conference call with the media. "It's sort of incrementally improving. I think it's going to take a couple more quarters of economic improvement before you see IT budgets growing substantially."

Shipments of the company's desktop PCs, notebook PCs, and servers rose an average of 27% from a year ago, faster than the growth of the rest of the industry, as Dell continued to take market share from rivals.

The CEO said the company would shift its purchases to keep costs in check. "As we see components moving in the wrong direction, we'll adjust our usage of those components to essentially drive demand away from them," Dell said.

For its second quarter ended Aug. 1, Dell reported net profit of $621 million, or 24 cents per share, up from $501 million, or 19 cents per share, a year earlier. Revenue rose to $9.78 billion from $8.46 billion in the year-ago quarter.

The company said it expects shipments to rise more than 25% in the third quarter, outpacing the broader industry, and sees third-quarter revenue growing about 15% to $10.5 billion, with expected earnings of 26 cents per share.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
11 Things IT Professionals Wish They Knew Earlier in Their Careers
Lisa Morgan, Freelance Writer,  4/6/2021
Time to Shift Your Job Search Out of Neutral
Jessica Davis, Senior Editor, Enterprise Apps,  3/31/2021
Does Identity Hinder Hybrid-Cloud and Multi-Cloud Adoption?
Joao-Pierre S. Ruth, Senior Writer,  4/1/2021
Register for InformationWeek Newsletters
Current Issue
Successful Strategies for Digital Transformation
Download this report to learn about the latest technologies and best practices or ensuring a successful transition from outdated business transformation tactics.
White Papers
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll