Dell profit dips in Q4 as revenue rises

Net income fell 5 percent, but strong laptop and server sales boosted revenue

Dell on Thursday reported a drop in profits during the fourth quarter of the company's 2010 fiscal year, but growth in revenue, fueled by strong sales of laptops and servers to the consumer and enterprise markets.

The company reported net income of US$334 million for the fourth quarter, which ended Jan. 29, a drop of 5 percent compared to the fourth quarter of fiscal 2009. The company reported earnings per share of $0.17, falling short of the $0.27 forecast by analysts polled by Thomson Reuters.

The company's revenue increased to $14.9 billion, compared to $13.4 billion in the previous year's fourth fiscal quarter. Revenue improved in all business segments, the company said in a statement.

Revenue grown was "solid ... in every part of our business," said Brian Gladden, Dell's chief financial officer, in a statement.

The revenue increase was partly driven by strength in commercial business, the company said. Revenue for the large enterprise unit was $4.2 billion, up 8 percent year over year. Revenue from the small and medium-size business segment was up 10 percent to $3.3 billion, driven by sales of mobile products and servers.

Dell also saw 11 percent year-over-year growth in consumer revenue. Revenue from consumer mobility products, including laptops, was up 26 percent. Shipments for those products grew 29 percent year over year.

Dell said the demand in its commercial business was "continuing to return during the fourth quarter," and it is optimistic that the trend will continue into fiscal 2011. The company did not provide revenue projections for the first quarter of fiscal 2011.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Dellfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Cate Bacon

Aruba Instant On AP11D

The strength of the Aruba Instant On AP11D is that the design and feature set support the modern, flexible, and mobile way of working.

Dr Prabigya Shiwakoti

Aruba Instant On AP11D

Aruba backs the AP11D up with a two-year warranty and 24/7 phone support.

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?