Dell storms in with triple profits -

Hardware company Dell said that it turned in revenues of $15 billion for its first financial quarter and turned in a profit of $945 million.

The profits were fuelled by the enterprise and services components of its business, with server revenue up by 11 percent year on year.  However, sales to the non-corporate sector were indifferent.

Breaking it down, so-called consumer revenue was $3 billion, downseven percent quarter on quarter, year on year. However, Dell managed to increase its profitability in the sector.

Growth markets including India and China now represent 27 percent of Dell’s total business – China grew by 22 percent and India by 28 percent.

Michael Dell, founder of Dell, said: “Our substantial profit increase demonstrates that our strategy is working and our execution is improving.” It turned in gross margins of 22.9 percent, up from 16.9 percent, partly because it was able to take advantage of commercial sales and cheaper components.