Dell dazzles with strong Q2

13 Aug 2004

Personal computer giant Dell has reported that second quarter revenues surged to US$11.7bn, up 20pc on the same period last year. The company attributed the growth to strong corporate spending.

Dell bucked the trend of fellow IT players HP and Cisco spooking the market with warnings about potential slowdowns and mediocre results by forecasting steady growth.

Dell reported a net income of US$799m in the second quarter, compared with US$621m last year. Across the board shipments grew 19pc. Server system shipments grew 44pc while storage revenue grew 60pc.

Looking to the third quarter, Dell is aiming for revenue of around US$12.5bn, which would represent an 18pc year-over-year increase. The company also expects unit shipments to rise 21pc in line with falling costs of memory components resulting in cheaper computers.

“We start with the marketplace advantage of a more efficient, more customer-focused way of doing business,” said Kevin Rollins, Dell’s chief executive officer. “Our global team is consistently disciplined in applying that business model.

“Like our shareholders, our expectation is for volume and share growth along with solid profitability. Those objectives aren’t mutually exclusive,” he said.

By John Kennedy