Dell's Q3 profits rise on strong enterprise demand

18.11.2010
Dell on Thursday reported a growth in profits and revenue for the third quarter of fiscal 2011, driven by strong demand for the company's commercial products.

The company reported net profits of US$822 million for the quarter that ended on Oct. 29, up from $337 million reported in the same quarter last year. Earnings per share were $0.42, beating estimates of $0.32 from analysts polled by Thomson Reuters.

Revenue for the third quarter was $15.4 billion, growing 19 percent from the year-ago quarter. Analysts expected revenue of $15.8 billion.

"Dell is growing in the right areas, and I'm very excited about our momentum," said CEO Michael Dell in a statement.

Over the past few years, Dell has been paying more attention to the enterprise market as it tries to move away from its reputation of being a consumer PC company.

Revenue for the commercial business for the quarter was $12.4 billion, up 24 percent year over year. Within the business, revenue for the Large Enterprise unit was $4.3 billion, up 27 percent from a year ago, while revenue for the Small and Medium Business division was $3.7 billion, up 24 percent.