Dell Thanks Enterprise Services for Improved Earnings
Electronics giant Dell reported results for its fourth quarter 2010 today. Revenue was $15.7 billion, up 5 percent year-over-year and 2 percent compared to the previous quarter. Brian Gladden, Dell’s CFO, said that this growth is thanks mainly to the growth the company’s enterprise business has seen. Enterprise Solutions and Services grew 7 percent to $4.6 billion in revenue, and Dell’s consumer electronics business grew 4 percent to $8.4 billion. Gladden continued to detail his outlook for the company:
“Mr. Gladden described key priorities underway to enable the company to deliver on its long-term value creation framework of 5-7 percent revenue growth, GAAP operating income of more than 7 percent and cash flow from operations exceeding net income.”
Operating expenses accounted for $2.1 billion, while operating income grew 61 percent to$1.3 billion.
Breaking the numbers into specifics, Dell’s enterprise business has seen a particular large amount of growth in storage. Servers and networking equipment sales were up 16 percent, rack and blade servers saw 26 percent growth, and EqualLogic, a storage company Dell recently acquired, grew its revenues by 49 percent.
The electronics’ giant business also experienced strong growth at 7 percent, and now accounts for 17 percent of total revenues, reaching $2.7 billion.
Dell is carving out an approach around efficient technology, and its competitors are also implementing strategies to monetize the markets they’re focusing on. Hewlett-Packard launched its first webOS tablet, the HP TouchPad, earlier this month, and based on its internal structure, analysts think the company is most likely already planning towards the next version of the device. Both Dell and Hewlett-Packard is also sticking with the PC market for as long as they can, with a recent IDC report indicates that they’ve managed to hold their positions as the top PC makers by sales in Q2.
Microsoft, in turn, is pushing the adoption of its personal cloud offerings – Windows Phone 7 and Office 365, among others.
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