Dell experiences 22pc revenue boost in Q2

20 Aug 2010

Dell’s revenues reached US$15.5bn in the quarter ending on July 30th, which increased by 22pc from the previous year.

Net income for the quarter was $545m, up 16pc from the same quarter in 2009, with earnings per share at $0.28.

Storage revenue grew to $624m, a 13pc increase and server and networking revenue grew by 35pc to $1.89bn. Services revenue increased by 57pc to $1.9bn.

Consumer revenue was flat at $2.9bn but large enterprise revenue saw a huge increase to $4.5bn – up by 38pc.

Small and medium business revenue was up by 25pc to $3.5m.

Dell’s gross margin, however, fell to 16.6pc, down from 18.7pc last year. As a result, Dell’s share price fell over 1pc in after-hours trading.

These results come soon after a quarter of the company’s shareholders withheld support for CEO Michael Dell’s re-election to the company board.

This result was cited as being caused by frustration with dropping share price and alleged fraudulent accounting scandals.

The company hopes that this mostly positive quarterly result will boost shareholder confidence.

“We continue to strengthen our portfolio of data centre solutions at an aggressive pace with the addition of key IP, talent and technology,” said Michael Dell.

“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.”