Saturday, November 20, 2010
Dell profits more than double on company upgrades !!
Dell has reported a 144% rise in third quarter net income to $822m (£511m), thanks to falling costs and a post-recession wave of IT upgrades.
Revenues in the three months to September rose 19% from a year ago, driven by corporate orders.
In contrast, the computer manufacturer reported only a 4% rise in takings from consumer clients, as household spending on laptops and PCs remained weak.
The US firm also said profit margins widened on a drop in component prices.
'Muted' consumer demand
"Dell is growing in the right areas, and I'm very excited about out momentum," said the company's founder, chairman and chief executive, Michael Dell, commenting on the company's third quarter results.
Regionally, revenue growth was strongest in the big emerging markets of Brazil, Russia, India and China, which together rose 30% on a year ago, led by India which was up 55%.
Dell said revenues had also been helped partly by its refusal to be drawn into price wars, claiming to have turned down some contracts that would have been insufficiently profitable.
Sales to public sector clients were buoyant - up 20% - despite a recent warning from peer Cisco that its sales to the US government sector would suffer because of fiscal cutbacks.
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