Dell Inc. (DELL) Profits Up In 3Q

Dell Inc. (NASDAQ:DELL) announced its third quarter results saying, “Our results this quarter and over the past year reflect a new Dell, one focused on providing our customers productivity-enhancing solutions either developed organically or acquired,” said Michael Dell, chairman and CEO. “We’re now investing in research and development activities at almost a billion-dollar annual run rate and our earnings per share is up 86 percent over the last 12 months.”

Dell Inc. reported revenue in the quarter was $15.4 billion, flat compared with the same quarter last year. GAAP earnings per share was 49 cents, up 17%; non-GAAP earnings per share were 54 cents, up 20%. GAAP operating income was $1.1 billion, or 7.4% of revenue. Non-GAAP operating income was $1.3 billion, or 8.4% of revenue.

Cash flow from operations was $851 million for the quarter and $5.2 billion over the last four quarters. Dell ended the quarter with $16 billion in cash and investments and repurchased $600 million in stock in the quarter. For the year, Dell has spent $2.18 billion to purchase 142 million shares of Dell stock.

“We delivered strong third-quarter results, maintaining our focus on operating income and improving our mix of higher-value enterprise solutions,” said Brian Gladden, Dell chief financial officer. “Consistent with our strategy and the investments we have made, we continued to see excellent momentum in our enterprise business, with double-digit revenue growth in services, servers and networking, and in key growth countries, despite some macroeconomic uncertainty.”

Dell Inc., based out of Round Rock, TX reported total revenue will increase 1-5% this fiscal year, which ends in January. Growth is “trending” to the lower end of that range, the company said. Analysts had predicted sales growth of 2 percent.

Shares of Dell Inc. were trading at 15.20, down 2.75% at 10:04 am ET on Wednesday.

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Rachel Brook is an up and coming financial writer focusing on commodity price inflation and how the overall market reacts to the price swings. She also covers emerging markets in Africa and SE Asia.
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