DOW JONES NEWSWIRES
Dell Inc.'s (DELL) fiscal first-quarter profit soared, easily
topping analysts' expectations, as the computer maker reported
improved profitability in end-user computing, particularly for
client desktop and laptop offerings.
The results come after peer Hewlett-Packard Co. (HPQ) earlier
Tuesday reduced its outlook for the year and warned of poor demand
for personal computers among consumers. Top computer makers are
facing challenges as tablet computers such as Apple Inc.'s (AAPL)
iPad attract the interest of consumers and corporations, a trend
that led to disappointing global shipments of PCs during the first
three months of 2011.
Dell reported revenue from desktop PCs fell 8.1% in the latest
quarter. The company has sought to reduce its reliance on
low-margin desktop and laptop computers by acquiring higher-end
technologies.
For the quarter ended April 29, Dell reported a profit of $945
million, or 49 cents a share, up from $341 million, or 17 cents a
share, a year earlier. Excluding acquisition-related charges and
other impacts, adjusted earnings rose to 55 cents a share from 30
cents. Analysts polled by Thomson Reuters expected 44 cents a
share.
Revenue grew 1% to $15.02 billion. In February, the company
projected a "slight sequential decline in revenue" from the fourth
quarter's $15.69 billion.
Gross margin widened to 22.9% from 16.9%.
Revenue from the mobility segment--mostly notebook computers,
but also other mobile devices--increased 3.4%.
Revenue grew 5.4% from the large enterprise customer segment and
6.9% for small and medium businesses. It dropped 2.3% for public
customers and 7.5% for the consumer segment.
Dell expects second-quarter revenue to rise by a percentage in
the mid-single digits on a sequential basis, while analysts
projected a 6.5% increase from the first quarter. Dell also
affirmed its full-year target.
Shares of Dell closed down 0.6% to $15.90 and were halted ahead
of the results.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com