Dell's Q2 net profits rise

Despite the revolt against Michael Dell, it seems he may be doing something right. Dell has announced that its overall company revenue has grown from 22 percent to $15.5 billion. 

In its Q2 financial report the company also announced its commercial business revenue had increased by 28 percent to $12.7 billion and its server, storage and services revenue was by up 43 percent to $4.3 billion. The company also announced an 11 percent gain in operating income to $745 million on a GAAP basis in year-over-year comparisons.

It said its commercial business continued to benefit from improved demand across all products and services, and in all geographies, as Dell expands on its enterprise portfolio.

Recently, Dell acquired Scalent, developer of virtual infrastructure management technology, and Ocarina Networks, a leading developer of storage optimisation technology. The company also announced an agreement to acquire 3PAR, a provider of utility storage for cloud computing. These acquisitions, Dell says, demonstrate its “commitment to build its capabilities for open and affordable enterprise.”

Dell’s business in emerging countries is also continuing to grow. Total revenue from Brazil, Russia, India and China (BRIC) were up 52 percent to account for 12 percent of Dell’s overall revenue.

GAAP operating income was $745 million, or 4.8 percent of revenue. Non-GAAP operating income was $872 million, or 5.6 percent of revenue. Cash flow from operations was $1.3 billion, with Dell ending the quarter with $13.1 billion in cash and investments.

Server and networking revenues have increased 35 percent with the rapid growth in blades. Storage revenue improved 13 percent led by EqualLogic storage products, which grew by 63 percent and services revenue increased 57 percent to $1.9 billion with the inclusion of Perot Systems.
However, one place Dell failed to make a difference was in the consumer market where revenue was flat at $2.9 billion. Operating income was at a $21 million loss.

Michael Dell waffled, from his mutinous ship: “We continue to strengthen our portfolio of data centre solutions at an aggressive pace with the addition of key IP, talent and technology. This quarter’s results are a strong reflection of the progress we’ve made, and we remain very focused on delivering the best possible solutions and services to meet our customers’ IT needs.”