UPDATED 17:00 EST / NOVEMBER 17 2011

Dell Sees Slow Growth, Expands Portfolio

Electronics maker Dell reported earnings for its third fiscal quarter, missing analysts’ expectations and lowering its own forecast.

Dell’s revenue has seen no growth at  $15.4 billion, and the company lowered its expectation for this fiscal year.

“Dell said that given the uncertain macroeconomic environment and complexity in working through the industry-wide hard drive issue caused by disruptions due to the flooding in Thailand, it is now forecasting revenue at the lower end of its outlook for 1% to 5% growth for the fiscal year.”

While Dell didn’t see any noticeable growth in sales, net profit did go up to $893 million or $0.42 per share, or adjusted earnings of $0.54 per share.  The latter beat analysts’ average expectation.

In spite of zero to little growth in sales, Dell is looking to expand enterprise revenue with some new solutions. The company launched the K-Series Advanced line yesterday, a portfolio of remote systems management appliances  based on the acquisition of Kice last year. The K1100-ADV and K2100-ADV can power up to 3,500 users, and come in RAID 5. The K1100 offers twice as much capacity than the latter, at 12GB of memory and 1.5TB of SAS.

Also this week Dell released a case study covering its partnership with networking company QLogic meant to introduce NIC partitioning (NPAR) to joint customers. NPAR is a technique that can be applied mainly to reduce I/O bottlenecks but also serves other purposes.

Last month Dell had another interesting development. The company ended its 10 years long partnership with storage vendor EMC. Alex Williams discussed how this wasn’t all that surprising considering that the relationship between the two companies, now turned competitors, has been quite rocky in the past few years.  The decision was eventually made due to Dell’s interest in offering its own storage products rather than reselling EMC’s.


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