Dell Q1 net jumps three-fold to $945 million

NEW YORK: Computer-maker Dell on Wednesday posted a nearly threefold increase in net income to $945 million for the first quarter ended March 31, 2011, boosted by 28% growth in the Indian market.

The company's net income grew to $945 million in the first quarter of FY12, from $341 million in the same period a year ago, Dell said in a statement. Revenue, however, grew just 1% to $15.01 billion in the reporting period, compared to $14.87 billion in the previous corresponding period.

"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 (which excludes the US, Canada, Western Europe and Japan) grew 17% and represented 27% of total company revenue, the statement said. Revenue from the Brics markets grew 18%, with India up 28% and China up 22%. Revenue from the Asia-Pacific and Japan (APJ) region increased 15% in the first quarter of 2011-12, hitting $3 billion, the statement said.

While small and medium business revenue grew by 22% in India, consumer business and large enterprises also witnessed solid growth in the Indian market. Globally, Dell's large enterprise unit recorded 5% growth during the reporting quarter, compared to the year-ago period.

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

Consumer revenue was down by 7% as demand was softer than expected, it added. Dell said it expects mid-single digit revenue growth in the second quarter, a sequential seasonal growth of 2-3%. Public business is expected to benefit from stronger spending among state and local governments and education customers, while small and medium business and consumer businesses may experience above average seasonality, it said.

"Dell's updated outlook for fiscal 2012 includes revenue growth of 5-9% and an increase in non-GAAP operating income growth to 12-18%," it said.