| By SOA News Desk | Article Rating: |
|
| November 24, 2006 11:15 AM EST | Reads: |
7,251 |
There was no earnings call this week from Dell, only a press release and an 8-K, both of which said the company still had to file its 10-K for Q2 and wouldn't have the 10-K for Q3 out by the deadline either. And the company said that it still didn't know the extent of any changes that might have to be made in this period or any other. Five days after it was supposed to post its third-quarter numbers Dell got its act together enough to say that it earned $677 million, or 30 cents a share, six cents better than Wall Street had guessed, on revenues of $14.4 billion, up 3% from $13.9 billion. But these are only preliminary numbers and given the investigations going on down in Round Rock, they may have to be restated.
Last week it couldn't report because of the "level of complexity" it was facing due to the ongoing demands of both an internal and a now formal SEC investigation into its books. It is unclear what the investigations are really all about, but it's not backdating. Dell said they could show a material weakness in its internal controls over its financial reporting.
Despite the haze and the slow growth - overall unit growth slowed to 3% year-over-year - Dell's stock rose almost 9% in after-hours trading to $27 and it held through Wednesday.
A year ago Dell earned $606 million, or 25 cents a share, after a restructuring charge of $442 million.
The company offered no solid guidance for Q4, which will include an extra week, but cautioned that "improvements in growth and profitability may not be linear." Evidently both revenue and earning will be below seasonality.
Dell claimed in its press release that it achieved a "better balance of liquidity, profitability and growth" in Q3 driven by a better product mix worldwide. Meaning it's not selling its soul for a mess of pottage like last year. Its operating margin was 5.7%, up from 4.3% sequentially.
It said server revenues in the quarter were $1.5 billion, up 10% on 12% unit growth and storage revenues were $577 million. Gartner says Dell's gained a tad of share in servers at IBM's expense and is now up to 10.8% from 10.2% last year after having lost pride of place to HP in PCs.
Laptop revenues were $3.9 billion on 17% unit growth and desktop revenues were $4.7 billion on negative 5% unit growth, both segments influenced, Dell said, by its decision to focus on "more profitable products." Desktop revenues declined 9% year-over-year to represent 32% of income.
Revenues from software and peripherals were $2.3 billion. Enhanced services revenues were $1.4 billion.
Asia-Pacific and Japan contributed $1.9 billion in revenues on 29% unit growth, and Dell claimed a share point increase of 1.4%. China wasn't broken out but Dell claimed to be the fastest-growing vendor in the region with units up 33%. It said units in India were up 93%.
In EMEA, where it said it "took a more balanced approach to pricing," revenues came in at $3.3 billion with unit growth up 9%, and in the Americas, where it get its best margins, revenues were at $9.2 million on negative unit growth of 4% although unit growth in Brazil was up 37% and up 19% in Canada.
Support has been a sore point, and Dell has been spending $150 million on it trying to get it up to par.
It said that the average time a support customer is on hold had been cut from nine minutes to three and that it had cut call transfers by 30% and improved first-contact resolution by 20%.
The 8K said Dell's current financial issues have drawn an even dozen lawsuits.
Copyright (c) Client Server News
Published November 24, 2006 Reads 7,251
Copyright © 2006 SYS-CON Media, Inc. — All Rights Reserved.
Syndicated stories and blog feeds, all rights reserved by the author.
More Stories By SOA News Desk
SOA World Magazine News Desk trawls the world of distributed computing and SOA-related developments for the latest word on technologies, standards, products, and services and brings key information to you in a timely and convenient summary form.
- The Top 150 Players in Cloud Computing
- Commercial vs Federal Cloud Computing
- Why IBM’s Server Chief Got Busted
- Industry Experts Discuss the State of Cloud Computing
- Cloud Expo New York Call for Papers Now Open
- Cloud Computing on Gartner's Top 10 List and SYS-CON Events' 2010 Calendar
- US Federal Government is Major Cloud Computing Innovator
- Google Wave
- Ulitzer.com Named Exclusive "New Media" Sponsor of Cloud Computing Conference & Expo
- Tactical Cloud Computing Panel at 1st Annual GovIT Expo
- Adaptivity & Cloud Computing: Exclusive Q&A with CEO Tony Bishop
- 4th International Cloud Expo: Photo Album
- The Top 150 Players in Cloud Computing
- SYS-CON.TV: Cloud Computing Expo Power Panel
- Commercial vs Federal Cloud Computing
- Why IBM’s Server Chief Got Busted
- 1st Annual GovIT Expo: Letter from the Technical Chair
- Industry Experts Discuss the State of Cloud Computing
- Deputy CIO of the CIA to Keynote 1st Annual GovIT Expo
- SOA World Power Panel on SYS-CON.TV
- CIA was Headed to an Enterprise Cloud All Along: Jill Tummler Singer
- Cloud Expo New York Call for Papers Now Open
- 1st Annual Government IT Conference & Expo: Themes & Topics
- Stock in Focus: Dragon Capital
- The i-Technology Right Stuff
- Who Are The All-Time Heroes of i-Technology?
- Get the Message
- Where Are RIA Technologies Headed in 2008?
- i-Technology Viewpoint: Is Web 2.0 the Global SOA?
- i-Technology Viewpoint: Thinking Outside the VC Box
- ESB Myth Busters: 10 Enterprise Service Bus Myths Debunked
- i-Technology Viewpoint: When to Leave Your First IT Job
- SOA Web Services Edge Conference Coverage on SYS-CON.TV
- Five Reasons Why Web 2.0 Matters
- SYS-CON.TV's "SOA Web Services" and "Enterprise Open Source" Programs To Air in December
- SOA World Conference & Expo SYS-CON.TV Power Panel Live From Times Square









Cloud computing is a game changer. The cloud ...

















