Dell posts higher Q2 earnings

Dell Thursday posted second-quarter revenue of US$11.7 billion, 20 percent higher than in the same quarter a year ago. The company, which reported its earnings after the close of financial markets in the U.S., cited increased global demand for its PCs and servers.

The company reported net income for the second quarter of US$799 million, or 31 cents per share. That figure compared with US$621 million, or 24 cents per share, it reported in the same quarter a year ago.

According to a statement, sales in Europe, the Middle East and Africa, and in Asia-Pacific and Japan rose 30 percent and 29 percent, respectively, in the quarter that ended July 30. Combined revenue for enterprise systems, including servers and storage systems, accounted for 22 percent of overall sales, matching a company high.

The company said that a 31 percent second-quarter increase in server shipments was above the average server growth for other companies, and it said revenue from software and peripheral products rose 31 percent, aided by strong demand for Dell printers. In notebook computers, Dell's combined shipments of Inspiron and Latitude systems rose 28 percent. Dell also said that sales of notebook computers to U.S. consumers were up 29 percent from the same period a year ago.

Looking ahead, Dell CEO Kevin Rollins said third-quarter shipments are expected to be 21 percent higher than in the same quarter last year. That growth is expected to produce quarterly revenue of about US$12.5 billion, up 18 percent, and earnings per share of 33 cents, a 27 percent increase from the third quarter of the previous fiscal year.

"Like our shareholders, our expectation is for volume and share growth along with solid profitability," he said. "Those objectives aren't mutually exclusive."

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