Dell's latest quarterly financial results exceeded Wall Street expectations, leading to a brief surge in stock prices (short of embedding), but very low expectations. The first quarter of Dell's total revenue increased 9 percent to 16 billion U.S. dollars, while profit was up only 4% to 784 million U.S. dollars. The company said:
Product shipments rose 22 percent, an increase of 3 times the server, the industrial rate of 21%. Storage revenues increased by 15% and enhanced services revenue increased by 13%. Growth in notebook shipments, Dell's strategic priorities, increased 43 percent and 1.2 times the rate of industrial growth. Consumer units grew more than 2 times the industry rate and the company's global share increased 1.2 points to 8.8% in the second quarter.
Most of the transfer from off 7,000 employees in the past year, though Dell also added that: "approximately 2,700 employees through acquisitions." It also benefited from a weaker U.S. dollar.
Dell said it in India and China, "revenue increased by 52% and 30%, unit shipments grew 68% and 43%."
Access to retail outlets (13,000 now) helped notebook sales. Dell said:
"Notebook units grew 43% over the previous year revenue growth of 22%. The second quarter, Dell released its first fully reinforced notebook Latitude XFR D630. In the global consumer, notebook units increased 78% and 60% of the product mix. "
An assumption that revenue growth is far lower than the growth in shipments of notebook computers, not only because of falling prices, but retail sales are likely due to low profits. (There is a margin transaction.)
Nevertheless, the company seems to have bottomed out following the leadership of Michael Dell's return on January 31, 2007.
Dell will resume its phenomenal growth of the former road is another matter. The world has changed since then.
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