Dell Australia full-year profit dips to AU$31 million while revenue grows 11%

Dell Australia has reported an after-tax profit of just over AU$31 million for the financial period ending 31 January 2020, slightly down from AU$33.6 million recorded in 2019.

It's the third consecutive year the company has seen profit decline.

The company previously entered into an Advance Pricing Arrangement (APA) with the Australian Taxation Office (ATO) for an agreed APA period that commenced 1 February 2017 to "establish, in accordance with Australia's income tax law, an appropriate arm's length outcome arising from the related party international dealings".

During the full year, the local arm of the tech giant paid AU$16.7 million in taxes, after recording pre-tax profit that came in at AU$47.8 million, which was down from the AU$48.7 million recorded a year prior.

The AU$16.7 million comprised of deferred tax of nearly AU$1.29 million, adjustments for current tax periods AU$109,000, and adjustments for deferred tax of prior periods of AU$1.1 million.

Tax paid at the Australian tax rate of 30% came in at AU$14.3 million.

Dell Australia's revenue for the 12-month period was just shy of AU$326 million, up 11% from last year's AU$293 million.

Of that, commission earned from related parties accounted for AU$284 million, an increase from last financial year's AU$259 million.

Related parties of Dell Australia are listed as Dell Financial Services Pty Ltd Australia, the Singaporean branch of Dell Global BV, EMC Global Holdings Company (Australia), EMC Information Systems International in Ireland, SecureWorks Europe Limited (UK), SecureWorks Australia, Pty Ltd, and US-based Boomi Inc, Dell Products LP, Dell USA LP, and SecureWorks Inc.

The immediate parent entity of Dell Australia is Dell International LLC and its ultimate parent entity is Dell Technologies, both of which are incorporated in the United States.

All up during the year, Dell Australia had 1,049 employees.

Last month, Dell Australia was named alongside with HP Australia as the equipment providers to the ATO to assist the government entity's grapple with new working conditions due to the COVID-19 outbreak.

Dell Australia scored itself a AU$2.1 million contract to supply new the tax agency with its Dell Latitude 5400 laptops.

In the same month, Dell Australia was also awarded AU$183,000 contract from the ATO for computer equipment; AU$968,000 across three contracts from the Department of Defence for computer equipment and accessories; a AU$27,500 contract from the Australian Bureau of Statistics for "components for information technology or broadcasting or telecommunications"; and another AU$27,500 from the Australian Federal Police for the supply of computer equipment.

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