Dell results fail to Gladden its heart

Major hardware vendor Dell said it turned in revenues of $15.7 billion for its second financial quarter with sales to enterprises and large organisations accounting for $4.6 billion.

Revenues only rose by one percent, year on year but sales of its servers and networking revenues rose by nine percent compared to the same quarter last year.

Dell also made headway in the services sector, with revenues going up six percent and accounting for $2 billion in the quarter. Storage revenues also rose – Dell has been acquisitive in the storage sector.

India and China are good generators of cash for Dell.

Brian Gladden, chief financial officer at Dell, stressed that the company had delivered quite a lot more of higher operating income. He said that the third quarter will see flat results and put that down to the seasonality Dell had seen in the last two years.

Traditionally, the third quarter is strong for hardware companies like Dell. So Dell will continue to re-shape its portfolio – meaning, we suspect, that more acquisitions are on the cards as it shifts direction slowly.