Dell Looks To Cloud, Tablets As Profits Soar
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Record profits for PC maker as business customers opt for notebooks and portable devices.

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The results announced yesterday marked one of Dell’s most successful quarters ever with revenue increases of $8.6 billion recorded – the single largest jump in its history.   

The worlds third largest PC manufacturing company also had its highest operating income in five years with GAAP operating income at $1.1 billion, or 7.3 percent of revenue.

Revenue in the quarter was $15.7 bn, totalling $61.5 billion for the fiscal year.

Incomes from enterprise and small to medium business also rose to $12.4 billion, driven by strong demand for laptop and desktops, which grew 10 percent.

Dell cited “record profitability in the enterprise solutions and services business, lower component costs and strong commercial execution” for the results.   

This sales resurgence is on the back of stronger demand among business, who account for a large portion of their customer base, wishing to change older desktops for newer models and mobile options.

“These types of corporate transitions take a while,” he said.

GAAP gross margin in the quarter was 21 percent and 18.5 percent for the year.    

Consumer revenue was $3.3 billion, up 11 percent but down year over year by 8 percent relative to a strong Windows 7 launch last year.

Late last year saw Dell introduce the Inspiron duo, which is a cross between a tablet and laptop which they will be hoping will do the business for them this year in their mobility line and laptops, which executives highlighted to analysts.

“We’re counting on the consumer business to deliver and improve margins,” Mr Brian Gladden, Chief Financial Officer said.


The Texas based giant made several acquisitions last year including security provider SecureWorks, Boomi, a software service to ease data exchange between cloud-based and on-premise applications and in cloud-based medical archiving firm Insite One.

“I’m very pleased with our fiscal year results and the strong performance we’re seeing in our commercial businesses.
Customers are now seeing Dell in a fresh light, and we’re heading into the new year with strength and optimism.” said Michael Dell, CEO.  

Asia-Pacific and Japan region, which includes Australian market grew by the largest at 17 percent, while EMEA and the Amercias were up 3 percent.