Dell Rides High On Services, Server Sales

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Dell beat analysts’ revenue estimates this week, reporting a strong second quarter for fiscal 2011. The company credits its results – including 63 percent revenue growth in the EqualLogic storage line – to a variety of factors, including a continuing corporate refresh cycle that helped cushion slow growth in its consumer business, according to this report from ServerWatch.

“Surging enterprise and public-sector demand for Dell's servers, storage and networking components propelled second-quarter sales at the No. 3 PC maker up 22 percent from a year ago, enough to top Wall Street's quarterly revenue and earnings estimates.

“For its second quarter of fiscal 2011, Dell (NASDAQ: DELL) said sales totaled $15.5 billion, beating analysts' revenue estimates of $15.2 billion, according to Thomson Reuters data. Earnings before one-time charges came in at $0.32 per share, ahead of Wall Street consensus of $0.30 per share.

“On a GAAP basis, income came in 16 percent higher than a year earlier, at $545 million, or $0.28 per share.

“The company said overall revenues from its server and networking lines jumped 35 percent, with blades showing particular growth.

“Storage also saw a healthy increase, rising 13 percent, with Dell's EqualLogic storage products proving especially hot, with revenue growing 63 percent.”

Read the Full "Dell Sees Server, Services Sales Soar" Story at ServerWatch.

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