Dell's Q2 Profits Rise on Strong Enterprise Sales

Dell on Thursday saw growth in net income and revenue for the second quarter of 2011, driven by strong growth in its enterprise hardware and services businesses.

On a GAAP (generally accepted accounting principles) basis, net income for the quarter ended July 30 was US$545 million, a 16 percent rise from the $472 million reported during the second quarter of last year. Earnings per share were $0.28.

The company reported revenue of $15.5 billion, a 22 percent increase from the year-ago quarter. The company's revenue beat the consensus estimate of $15.2 billion from analysts polled by Thomson Financial.

Revenue in the BRIC -- Brazil, Russia, India and China -- countries accounted for 12 percent of Dell's overall revenue, and was up by 52 percent.

Demand for enterprise offerings, including servers and network, storage and services products, increased worldwide during the quarter as companies refreshed IT infrastructures, the company said in a statement. There was also growth in the company's laptop and desktop revenue.

Server and networking revenue grew by 35 percent to $1.89 billion, driven by strong growth in blade shipments. Storage revenue grew 13 percent to $624 million, and services revenue increased 57 percent to $1.9 billion.

The refresh of PCs in enterprises led strong growth in the company's commercial client business. Overall revenue from mobility products -- which includes laptops -- was $4.7 billion, up by 21 percent, while desktop revenue was $3.87 billion, up 17 percent.

Consumer revenue, on the other hand, was flat at $2.9 billion, the company said.

The company recently took a few steps to boost its enterprise offerings. The company this week agreed to acquire virtualized storage provider 3PAR for about $1.15 billion. In July it acquired Scalent, a provider of server-virtualization management software, and Ocarina Networks, a storage vendor.

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