SAN FRANCISCO - Dell Inc., said Tuesday that its net income for the last quarter almost tripled as the manufacturer of personal computer benefited more low-cost component computer and growth in some of its most profitable product lines.
Shares of Dell, analysts who Beats adjusted estimates of income net but is come a little below revenue increased 5 percent in extended trade.
For the three months ended April 29, Dell earned $ 945 million, or 49 cents per share, compared to $ 341 million, or 17 cents per share, a year earlier.
Excluding non-recurring items, Dell earned 55 cents per share, easily beating what Wall Street wanted. Analysts surveyed by FactSet adjusted forecasts earnings of 43 cents per share.
Revenue increased only 1% to 15.02 billion $ 14.9 billion last year, missing Analyst estimates of $ 15.4 billion. Product revenues remained stable at $ 12.1 billion, while revenues from services soared to 6 per cent to 3.0 billion.
Dell segment consumers, which is about 20% of its revenues and is therefore much smaller that the portion of its income from the sale to companies, fell from 7% to $ 3.0 billion.
The consumer demand has fallen more than expected Dell and, in an interview, Chief Financial Officer Brian Gladden some this attributed to the market for consumer PC being saturated in developed countries. He added that, while tablet computers are still a small part of the PC market, there is clearly a "impact" of them at the request of the consumer for the traditional PC.
Revenue from large companies climbed to 5 per cent to 4.5 billion, while the incomes of small and medium-sized enterprises has increased by 7% to $ 3.8 billion. Revenues in the public sector decreased by 2 per cent to $ 3.8 billion.
By product category, the company saw the biggest gain of servers and networking, where income has increased by 11% to $ 2.0 billion. Desktop PC sales fell by 8% to $ 3.3 billion, while mobile PCs has increased from 3% to $ 4.7 billion.
Dell strives to increase the proportion of server computers, peripheral storage of data and technology consulting services that it sells, because these areas are more profitable than the base of the PC business. Compared to the year there are, however, most of the categories of Dell products accounted for on the same percentage of revenues and computers for consumers and ongoing companies to make more than half the income of Dell.
Again, the gross margin of Dell, is an indicator of the activities of Dell how effective, waiting arrived by 22.9%, higher than the percentage of 20.4 analysts interviewed by Thomson Reuters.
Strategy of Dell by focusing on more profitable areas of its business and pruning of offerings lower-margin "works well," said Gladden.
Pacific Crest analyst Andy Hargreaves called gross margin of the company "impressive" and said Dell should be able to keep for the moment.
"They do not have the possibility to maintain long term margins, but to have therefore lead towards more service-oriented companies,"he said.""
Looking at the current quarter, Dell has predicted income will increase by a percentage in the figures mid-single in the first quarter, slightly faster than its seasonal growth of 2 to 3%. Analysts expect $ 16.0 billion.
For the full fiscal year, the company continues to expect revenue to increase from 5 to 9%, which implies a total of 64.6 to 67.0 billion. Analysts expect annual income of $ 64.4 billion.
Dell sharing roses 86 cents or 5.4%, to $16,76 in extended trade. The regular commercial finished stock down 10 cents to 15.90 $.
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