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Dell increases net profit by 60%

16 November 2011 11:35 (UTC +04:00)

Baku - APA-Economics. Dell Inc.’s third-quarter net income rose 9%, although revenue remained flat from last year as the computer maker continued pruning less profitable parts of its business, Market Watch reported.

The company also predicted that full-year revenue will come in near the low end of the guidance it issued in August, which was itself a reduction from Dell’s previous expectations. Dell cited the uncertain economy in its earnings report, as well as the "industry-wide hard drive issue" â€” a reference to the recent flooding in Thailand that has hurt many tech companies’ manufacturing operations.

For the quarter ended Oct. 28, Dell earned $893 million, or 49 cents a share, compared with $822 million, or 42 cents, a year earlier.

Excluding one-time items, the Round Rock, Texas, company said Tuesday that it earned 54 cents a share, 8 cents higher than what analysts polled by FactSet expected.

Revenue was flat at $15.4 billion. Analysts expected $16.2 billion.

Dell’s revenue from large corporations rose 4% to $4.5 billion, while its revenue from consumers fell 6% to $2.8 billion. Revenue from the public sector fell 2% to $4.4 billion, and revenue from small- and medium-sized businesses inched up 1% to $3.7 billion.

Dell added that it now expects revenue for all of 2011 near the bottom of its outlook range, which predicts revenue growth of 1% to 5% over 2010. This forecast, lowered in August from a previous estimate of 5% to 9% growth, translates to $62.1 billion to $64.6 billion.

Analysts expect $62.6 billion in revenue.

Dell shares fell 32 cents, or 2.1%, to $15.36 in late trading after the report’s release. The stock rose 31 cents, or 2%, to $15.63 in regular trading.

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