On Tuesday, Dell Inc. reported record earning for its first quarter, comfortably beating the analysts’ estimates --- while the company’s large enterprise section showed record operating profit, the small and medium segment reported its highest net profit in the last two years.
Going by the quarterly earnings report put forth by Dell’s revenue from the large enterprise segment witnessed a 5 percent year-on-year rise to $4.5 billion; with that from the small and medium business increasing 7 percent to $3.8 billion.
However, the company reported weakness in the consumer market, with its consumer revenue witnessing a 7 percent plunge to $3 billion, as against last year. In addition, the public sector sales also fell 2 percent.
Overall, the quarterly profits at Dell increased 177 percent from a year back, to $945 million, on revenue of $15 billion, which rose by 1 percent. In the opinion of the analysts, Dell’s record operating profit figures for the quarter is an indication of the fact that the company is connecting with a strategy which essentially centers on selling increasingly profitable hardware and services largely to business customers.
With Dell’s quarterly earnings report bringing about a 4 percent surge in Dell’s stock almost immediately after trading recommenced at 4:20 pm ET, the company’s CEO Michael Dell said that the results underscore “a solid start” for the year; and added: “Our substantial profit increase demonstrates that our strategy is working and our execution is improving.”
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