Dell earnings jump 177% in fiscal 1Q12

- Wednesday, May 18, 2011

Dell earnings jump 177% in fiscal 1Q12

US PC manufacturer Dell (Nasdaq: DELL) reported a net profit of US$945mn for the first quarter of its fiscal 2012, ended April 29, surging 177% year-on-year, according to financial results reported by the company.

Dell saw its revenue grow 1% to US$15bn in the quarter, from US$14.8bn in 1Q11. Enterprise solutions and services grew 5% to US$4.4bn, representing 30% of Dell's total revenues.

Costs of revenue were brought down 6%, boosting the bottom line.

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The company has announced plans to invest US$1bn this year in delivering new solutions, building cloud capabilities and adding new engineering, development and solutions-based resources in the US and the global market. This investment is aimed at supporting its enterprise solutions and services focus.

Revenues from the BRIC countries - Brazil, Russia, India and China - were up 18% during the quarter.

Dell expects mid single-digit revenue growth during Q2 compared to the previous fiscal year, while seeing sequential seasonal growth of 2-3%. The company has updated its outlook for fiscal 2012 to revenue growth between 5% and 9%.

Use this link to view the results.