Dell Australia reports AU$11.49m profit for 2016

The local arm of the IT giant made AU$11.49 million in net profit for the 12 months to January 2017.
Written by Asha Barbaschow, Contributor

Dell Australia has made its financial results for 2016 available to the Australian Securities and Investments Commission (ASIC), reporting AU$11.49 million in after-tax profit, up AU$1.4 million year on year.

Revenue for the 12 months to January 31, 2017, was AU$268.4 million, up from the 2016 total of AU$245.7 million.

The principal continuing activity of the company was described in the ASIC document as being the facilitator of the "sale of personal computer hardware and peripherals on behalf of a related entity and the rendering of IT consulting services".

Commission earned from a related party returned AU$184.96 million to Dell Australia; product sales to a related party brought in AU$72.2 million; service fees earned also from related parties was AU$8.2 million; and service revenue for the year totalled AU$2.6 million.

Tax paid during the year was AU$5.4 million, which included a deferred tax amount of AU$233,000.

The local arm of the US giant also spent AU$171.2 million on employee costs, including wages and benefits.

On October 31, 2016, Dell Australia said it transferred certain assets and liabilities to Dell Software Pty Ltd. A few days later, on November 2, the company transferred certain assets and liabilities -- including its IT consulting services -- to NTT Data Services Australia for cash consideration of AU$1.29 million, resulting in a gain amounting to AU$821,000.

Japanese giant NTT paid $3.1 billion for Dell Services, with the deal also finalising on November 2, 2016.

The spin-off of Dell Services followed the $67 billion purchase of EMC Dell finalised in September, allowing the Texas-based tech giant to position itself as the one-stop shop for the entire IT stack under the new name of Dell Technologies.

Globally speaking, Dell Technologies posted an operating loss of $3.2 billion, on revenue of $61.6 billion for the 12 months to February 3, 2017.

Speaking with ZDNet at Dell EMC World earlier this month, Michael Dell said Australia is high on the priority list for his company, which gives local organisations access to almost the entire Dell EMC stack ahead of many other countries.

"We have a tiered approach; we have a group of countries that are the big countries that we focus on first and Australia happens to be one of them," he said.

"Japan, China, India happen to be others in the region that are the biggest markets and markets we tend to focus on."

The company chief did say that the dynamic of his company's market share in many regions shifted with the addition of EMC.

In the Asia-Pacific and Japan region, Dell EMC boasts 40,000 team members at 121 facilities.

Also during Dell EMC World, the company unveiled its PowerEdge 14th generation servers, new SDS products, and additions to its all-flash storage portfolio.

Dell Technologies also lifted the lid of its latest business plan, essentially handing customers products and services to be paid for "as a service"; while Dell Technologies Capital, the venture arm of Dell Technologies, also announced its plan to invest $100 million annually in startups.

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