Dell Q1 net income up at $945 million

The company’s net income grew to $945 million in Q1, FY’12, from $341 million in the same period a year ago, Dell said. Revenue, however, grew just 1 per cent to $15.01 billion in the reporting period, compared to $14.87 billion in Q1, FY’11.

“We’re off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving,” Dell Chairman and CEO Michael Dell said.

Revenue from growth markets (excluding the US, Canada, Western Europe and Japan) grew 17 per cent and represented 27 per cent of total company revenue, Dell said. Revenue from BRIC countries grew 18 per cent, with India up 28 per cent and China up 22 per cent.

Revenue from the Asia-Pacific and Japan region increased 15 per cent in Q1, FY'12, hitting $3 billion, the company said. While small and medium business revenue grew by 22 per cent in India, consumer business and large enterprises also witnessed solid growth in the Indian market. Globally, Dell’s large enterprise unit recorded 5 per cent growth during Q1 against same quarter last year.

However, its public revenue unit's revenue declined 2 per cent on weaker spending on desktop and laptop products. Small and medium business revenue increased by 7 per cent, a two-year high driven by strong demand across all products and services, Dell said.

Consumer revenue was down by 7 per cent as demand was softer than expected. It expects mid-single digit revenue growth in the second quarter, a sequential seasonal growth of 2-3 per cent.