Dell revenue growth moves onwards and upwards

13 May 2005

The latest results from Dell show the computer maker maintaining its growth momentum and recording its highest ever earnings per share figure.

For the first fiscal quarter 2006 ended April 29, the company’s total revenue was US$13.4bn, a 16pc increase year-over-year, and net earnings were 37 cents per share, up 32pc. Operating profit was US$1.2bn, a 22pc rise and net profit $934m, up 28pc. The company also said it expected revenue growth to be higher in the second quarter.

Performance was particularly strong outside Dell’s home market with revenue jumping 21pc year-over-year, reaching 42pc of the company’s total revenue. Worldwide revenue from storage systems increased 49pc and sales of mobility products primarily notebooks grew 22pc from a year ago.

“Our greatest strength in the quarter was precisely in the products, services and regions in which we’re most focused on growing,” said CEO Kevin Rollins. “Customers worldwide are increasingly relying on us for their diversified information technology requirements.”

Rollins said the company expected revenue to grow 16pc to 18pc in the second quarter, to between US$13.6 and US$13.8bn, and earnings per share of 37 cents to 39 cents.

In the first quarter, Dell’s operating margin as a share of revenue was 8.8pc, up from 8.4pc a year ago. The company generated US$1.2bn in cash flow from operations.

By Brian Skelly