Dell sales miss analysts’ estimates


22 Feb 2012

Computer maker Dell may well be feeling competition from Apple, Acer and Lenovo, as the company expects sales to dip 7pc to US$14.9bn in the first quarter.

Analyst estimates had pegged sales for the period at an average of US$15.1bn, according to data compiled by Bloomberg.

Decreasing demand for PCs also affected growth.

Dell, however, reported a slight increase in revenue for its fourth fiscal quarter and full fiscal year 2012.

Revenue for Q4, which ended 3 February, amounted to US$16bn, up 2pc over the US$15.7bn from the same period in 2011. That 2pc sales increases is partly the result of an extra week in the fourth quarter of fiscal 2012 compared to the year-ago period.

Also for its fourth quarter, Dell reported earnings of US$764m, down 18pc over the US$927m from the same period last year. That amounts 43 cents per share, a decrease of 10pc compared to last year.

For the full fiscal year, Dell reported revenue of US$62.1bn, up 1pc compared to last year. The company also reported income of US$3.4bn, up 33pc over last year, with earnings per share rising during the period by 39pc to US$1.88.

Dell Services revenue grew 12pc to US$2.2bn and represented 14pc of Dell’s business. The transactional services business increased 14pc, with strong attach rates of Dell premium support services and the outsourcing business grew 8pc. Services backlog increased 11pc to US$15.5bn.

Dell-owned storage grew 33pc to US$463m, led by offerings based on Dell-owned intellectual property, including Compellent, which had sequential growth of more than 60pc.

Server and networking revenue grew 6pc.