Topic: Banking

Dell: Corporate IT upgrade cycle fuels first quarter

Summary: Riding a cycle of corporate PC and server upgrades, Dell reported stronger-than-expected first quarter results. The company said the corporate IT cycle is just starting.

By Larry Dignan for Between the Lines | May 20, 2010 -- 13:20 GMT (06:20 PDT)

Follow @ldignan

Riding a cycle of corporate PC and server upgrades, Dell reported stronger-than-expected first quarter results.

The company reported net income of $441 million, or 22 cents a share, on revenue of $14.87 billion, up 21 percent from a year ago (statement). Given HP's strong results, Dell's earnings weren't that much of a surprise. Dell's non-GAAP earnings were 30 cents a share. Wall Street was expecting Dell to report earnings of 26 cents a share on revenue of $14.27 billion.

As for the outlook, Dell said that the second quarter is likely to resume normal seasonal patterns. That means sequential growth in the low single digits in the second quarter. The company also said that supplies remain tight.

In a statement, Dell said:

The company believes it is seeing the early stages of a corporate IT refresh. Commercial demand continued to build in the first quarter and Dell is optimistic the trend will continue throughout the year. Dell expects seasonal improvements from its state and local government, consumer and education businesses in the second quarter. But, the second quarter and the first part of the third quarter typically experience slower demand from larger commercial customers in the U.S. and Europe.

By the numbers for the first quarter:

Gross margin for Dell was 16.9 percent, lower than Wall Street expectations of 17.72 percent. Non-GAAP margins were 17.6 percent.
Mobility revenue was up 18 percent, sales in Brazil, Russia, India and China surged 60 percent and server revenue jumped 39 percent.
Large enterprise revenue was $4.2 billion, up 25 percent from a year ago. Servers led the charge. Operating income was $283 million.
Public sector revenue was $3.9 billion, up 22 percent from a year ago. Operating income was $298 million.
SMB revenue was up 19 percent to $3.5 billion. Operating income was $313 million.
And consumer revenue was $3.2 billion, up 16 percent from a year ago. The consumer unit squeaked out operating income of $17 million.

Topics: Banking, Dell, Enterprise Software

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RE: Dell: Corporate IT upgrade cycle fuels first quarter

Given HPs strong results, Dells earnings werent that much of a surprise. Dells non-GAAP earnings were 30 cents a <a href="http://wposfv.com/">education news</a> and share.<a href="http://www.bsoleb.org/"> a </a> <a href="http://www.asiamf.org/"> b </a> <a href="http://www.globalcontemporaryfineart.com/"> c</a> <a href="http://www.leedphilly.com/"> d</a> <a href="http://www.crescenciohernandez.com/"> e</a> <a href="http://www.edifyonline.net/"> f</a> <a href="http://www.columbiaslongestdays.info/"> g</a> <a href="http://www.anangrymob.com/"> h</a> <a href="http://www.performingalileo.net/"> i</a> <a href="http://www.methkillswyoming.org/"> j</a> <a href="http://www.edra41.org/"> k</a> <a href="http://www.spindletopsteakhouse.com/"> l</a> <a href="http://www.splashgraphicsllc.com/"> m</a> <a href="http://www.abnamro-uae.com/"> n</a> <a href="http://www.cadepc.com/"> o</a> <a href="http://www.hcenr.org/"> p</a> <a href="http://www.poliesportiu-cellera.org/"> q</a> <a href="http://www.stljewishvideos.com/"> r</a> <a href="http://www.communitypharmacyofsarasota.org/"> s</a> <a href="http://www.gaporganikkongre.org/"> t</a> <a href="http://www.isupportbridgewater.com/"> u</a> <a href="http://www.sportpsychexpo.com/"> v</a> <a href="http://www.brennanstandsalone.com/"> w</a> <a href="http://www.connectechporthuron.org/"> x</a> <a href="http://www.houseofkidsnyc.com/"> y</a> <a href="http://www.soshaiti2008.com/"> z</a> <a href="http://www.corporate-fussballwm.com/"> aa</a> <a href="http://www.nationalshakespeareday.com/"> ab</a> <a href="http://www.knightsforobama.org/"> ac</a> <a href="http://www.actioniseloquence.net/"> ad</a> <a href="http://www.careerteampartners.com/"> ae</a> <a href="http://www.bueydecabeza.com/"> af</a> <a href="http://www.makeawishhawaii.net/"> ag</a> <a href="http://www.magistralianucleo.org/"> ah</a> <a href="http://www.silcon.org/"> ai</a> <a href="http://www.workingclasshero.us/"> aj</a> <a href="http://www.fwtrack.com/"> ak<a href="http://ipadbagblog.com/"> k</a><a href="http://www.sutudeg.org/"> l</a>

edward polling
15 June, 2011 21:24

Reply Vote
- RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 The chip giant reported net income of $2.9 billion, or 51 cents a share, on revenue of $10.8 billion, up 34 percent from a year ago (statement). Intel was expected to report second quarter earnings of 42 cents a share on revenue of $10.25 billion, according to Thomson Reuters. Intel?s strong results came amid multiple concerns about the economy and tech demand.
 
 Linux Love
 23 June, 2011 21:20
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 The chip giant reported net income of $2.9 billion, or 51 cents a share, on revenue of $10.8 billion, up 34 percent from a year ago (statement). Intel was expected to report second quarter earnings of 42 cents a share on revenue of $10.25 billion, according to Thomson Reuters. Intels strong results came amid multiple concerns about the economy and tech demand.
 
 Linux Love
 23 June, 2011 21:26
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 For the third quarter and 2010, Intel also was upbeat about its prospects. The company said revenue would be $11.6 billion with gross margins of 67 percent.
 
 Linux Love
 23 June, 2011 21:27
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 For the year, Intel raised its gross margin outlook to 66 percent, up from 64 percent before. Wall Street was only expecting Intel to report third quarter revenue of $10.9 billion for the third quarter.
 
 Linux Love
 23 June, 2011 21:27
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 In fact, Intels third quarter sales projection is in line for what Wall Street was expecting in the fourth quarter, historically the companys best.
 
 Linux Love
 23 June, 2011 21:27
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 No matter how you slice the second quarter, Intels results were stellar. It remains to be seen if the corporate upgrade cycle brings AMD along for the ride or whether Intels gains mean pain for its smaller rival. AMD reports its results on Thursday. Wall Street expects AMD to report earnings of 7 cents a share on revenue of $1.55 billion.
 
 Linux Love
 23 June, 2011 21:27
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 In a call with analysts today, Otellini said the companys growth continues to run ahead of economic growth and credited some of that to growth of the Internet, as well.
 
 Linux Love
 23 June, 2011 21:28
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 Asked about growth of the Atom processors in the netbook market, Otellini replied that he didnt see much growth happening there but added that the space to watch for the second half of the year would be digital entertainment products.
 
 Linux Love
 23 June, 2011 21:28
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 @Linux Love Specifically, he noted Google TV products running on Atom, as well as TV sets themselves, set-top boxes and DVD players. That, he said, would be the segment to watch for the holiday season.
 
 Linux Love
 23 June, 2011 21:28
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 @Linux Love With that said, non-netbook Atom growth was significant this past quarter but its still a small number. Expect to see non-netbook Atom to move the needle early next year with growth and adoption of tablets and handsets and Google TV kind of<a href="http://www.pcloshwdb.com/"> pcloshwdb</a> products.
 
 Linux Love
 23 June, 2011 21:29
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
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 Linux Love
 23 June, 2011 21:29
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 Otellini said he considers tablets as an additive category of computing, just as netbooks were.
 
 Linux Love
 23 June, 2011 21:29
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 Like netbooks, which he thinks had the higher potential to cannibalize PCs, tablets are used differently than PCs.There is another key Google communication tool, one that relates directly to open source, but also relates to Googles financial advantages over other open source companies like Ubuntu. These are its Software Development Kits, its SDKs. SDKs are often written alongside code. Theyre coding documents for coders. Getting through them separates the men from the boys, the women from the girls, the Americans from the Chinese. Google developer documents arent like that. Heres a piece of one taken at random: Content providers are activated when theyre targeted by a request from a ContentResolver. The other three components activities, services, and broadcast receivers are activated by asynchronous messages called intents. An intent is an Intent object that holds the content of the message. Sounds like nonsense, but each term mentioned here is defined before its used. Its easy to follow, its organized, its structured.<a href="http://www.wa2dci.com/"> al</a> <a href="http://www.funds-china.com/"> am</a> <a href="http://www.britishshakespeare.com/"> an</a> <a href="http://www.6999999.com/"> ao</a> <a href="http://www.belex-homes.com/"> ap</a> <a href="http://www.basistrening.com/"> aq</a> <a href="http://www.estudielenco.net/"> ar</a> <a href="http://www.landrac.com/"> as</a> <a href="http://www.nikkeibp-chinese.com/"> at</a> <a href="http://www.expressnetairlines.com/"> au</a> <a href="http://www.israeliharvestcooperative.com/"> av</a> <a href="http://www.revistaurbanismo.com/"> aw</a> <a href="http://www.roypac.com/"> ax</a> <a href="http://www.asklocal.biz/"> ay</a> <a href="http://www.eriteatteri.com/"> az</a> <a href="http://cgaya.com/"> ba</a> <a href="http://s-aquarion.com/"> bb</a> <a href="http://ili-inter.com/"> bc</a> <a href="http://asyouare.net/"> bd</a> <a href="http://blueampu.net/"> be</a> <a href="http://calciofc.net/"> bf</a> <a href="http://citaweb.net/"> bg</a> <a href="http://djxm.net/"> bh</a> <a href="http://eravaruste.net/"> bi</a> <a href="http://joysoft.net/"> bk</a> <a href="http://opendoorbc.net/"> bl</a> <a href="http://parentel.net/"> bm</a> <a href="http://riotfest.net/"> bn</a> <a href="http://th-haint.com/"> bo</a> <a href="http://unitedcms.net/"> bp</a> <a href="http://quennie.net/"> bq</a> <a href="http://cress-inc.net/"> br</a> <a href="http://www.teamnorrland.net/"> bs</a> <a href="http://www.netzaesthetik.com/"> bt</a> <a href="http://www.tasteofthepast.com/"> bu</a> <a href="http://www.hemofilia-malaga.org/"> bv</a><a href="http://www.scjsw.info/"> bw</a><a href="http://www.digipro-audiovisuel.com/"> bx</a><a href="http://www.bilfingerberger-bot.com/"> by</a>
 
 Linux Love
 23 June, 2011 21:30
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 For the third quarter and 2010, Intel also was upbeat about its prospects. The company said revenue would be $11.6 billion with gross margins of 67 percent. At yesterdays keynote speech to announce the new iPhone, Apple CEO Steve Jobs spent the first 30 minutes talking about iPad, iBooks and the App store. Of course, the speech kicked off a developers conference so an extended update on the mobile app landscape was to be expected. And, iPad and iBooks are the latest darlings to come out of Cupertino, so that was no surprise either.Finally, I have to admit that I was pleasantly surprised by the pricing of a device that Jobs seemed to be positioning as a premium, a notch (or two) above the competition that might be worth the extra few bucks, a la the Mac. So, yeah, the iPhone 4 is a winner - nice new hardware design, as well as some cool stuff with the software, which we kind of already heard about back at the iPhone OS 4 event in April but is still impressive, nonetheless. But there was one major improvement that the iPhone needed and didnt get in this new version - a new carrier in the U.S. At yesterdays keynote speech, he emphasized that the video phone feature - called FaceTime Video Calling - is only for use over WiFi for now, saying, We need to work a little bit with cellular providers. And people chuckled. He also talked about the under-the-hood performance and the ability to process downloads of 7.2 mbps and uploads of 6.8 mbps. But then he paused to note that those speeds are theoretical because the carriers dont support them yet. Doh! The real winners out of yesterdays news announcements are the current iPhone owners whose AT&T contracts are set to expire this year. Not only is AT&T allowing them to re-up their contracts for two more years so they can get discounted pricing today, its also allowing them to keep their unlimited data plans, which AT&T eliminated for new customers, effective yesterday. That means they can check out the new Netflix app or place as many FaceTime video calls as theyd like without worrying about megabyte-overage charges. But new customers will fall under a new two-tiered pricing plan that caps customers at 2 GB per month and then starts tallying up overage fees after that. In an earlier post, I wrote that AT&Ts new data plans feel more like a company that wants to discourage usage rather than invest in it so it can support what Apple is envisioning. Apple is already making excuses about its new features being theoretical or WiFi only because the carriers arent ready for it.<a href="http://www.accessmedicalbooks.com/"> bt</a> <a href="http://www.cartecampus.com/"> bu</a> <a href="http://www.internetparalaevangelizacion.org/"> bv</a><a href="http://www.asklocal.biz/"> bw</a><a href="http://www.brennanstandsalone.com/"> bx</a><a href="http://www.estudielenco.net/"> by</a> <a href="http://www.soshaiti2008.com/"> bx</a> <a href="http://www.newyork-auto.net/"> bz</a><a href="http://www.storabokbytardagenimariefred.com/"> ci</a> <a href="http://www.keysfresno.com/"> cj</a> <a href="http://www.trustedcondoms.com/"> ck</a> <a href="http://www.lakersforgovernor.com/"> cl</a><a href="http://riotfest.net/tag/scandinavian"> cm</a><a href="http://www.chicago-water-damage.info/"> cn</a><a href="http://www.esn-nederland.org/"> co</a><a href="http://www.spayandneuterus.org/"> cp</a><a href="http://www.dabrunorestokosher.com/"> cq</a><a href="http://www.gburgtv.com/"> cr</a><a href="http://www.gburgtv.com/contact-us"> cs</a><a href="http://www.gburgtv.com/our-company"> ct</a><a href="http://www.gburgtv.com/upcoming-events"> cu</a><a href="http://www.envisionnbstsa.com/"> cv</a>
 
 Linux Love
 23 June, 2011 21:31
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 @Linux Love The front of the HTC EVO 3D is dominated by the beautiful 4.3 inch qHD (540?960 pixels) display. This is the same as the HTC Sensation 4G and after playing with these two devices I am starting to feel the traditional 480?800 is getting boring. There are four touchscreen hardware buttons below the display and a large headset speaker opening with indicator lights with a front facing camera above the display.
 
 Kerimcan
 10 September, 2011 11:01
 
 Reply Vote
 - RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 @Linux Love However, if the book is licensed for "minimal freedom", then Hollywood will have to pay big bucks for a license from the author.
 
 If your looking at the freedom of the person who wrote the original code/book/whatever, then the GPL gives them freedom from a sort of "cite and copy" plagarism.
 
 (ok, yes, the analogy breaks down because the GPL doesn't deal with money, but I think the point is valid.)
 
 I simply don't understand the concept of freedom described in the article, which strikes me as a sorta freedom to exploit without giving anything back.
 
 Cahin
 12 September, 2011 05:15
 
 Reply Vote
- RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 For the third quarter and 2010, Intel also was upbeat about its prospects. The company said revenue would be $11.6 billion with gross margins of 67 percent.
 
 Linux Love
 23 June, 2011 21:21
 
 Reply Vote
- RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 For the year, Intel raised its gross margin outlook to 66 percent, up from 64 percent before. Wall Street was only expecting Intel to report third quarter revenue of $10.9 billion for the third quarter.
 
 Linux Love
 23 June, 2011 21:21
 
 Reply Vote
- RE: Dell: Corporate IT upgrade cycle fuels first quarter
 
 In fact, Intel?s third quarter sales projection is in line for what Wall Street was expecting in the fourth quarter, historically the company?s best.
 
 Linux Love
 23 June, 2011 21:21
 
 Reply Vote