Articles, Blogs, News, and Views on Dell Virtualization and Cloud Computing Technologies

Dell News on Ulitzer

Subscribe to Dell News on Ulitzer: eMailAlertsEmail Alerts newslettersWeekly Newsletters
Get Dell News on Ulitzer: homepageHomepage mobileMobile rssRSS facebookFacebook twitterTwitter linkedinLinkedIn

Dell Authors: Jnan Dash, Dmitry Sotnikov, Elizabeth White, dell exclusive , Pat Romanski

Related Topics: Dell News on Ulitzer

Dell: Article

HP Falls, Dell Shines

Dell CEO Kevin Rollins Disses Carly, Says Q2 Ought to Have Been Fine for HP Too

Related Links:
  • "Is Carly Toast Yet?" - Maureen O'Gara on HP's Fiorina, Three Years On
  • "HP's Problem Ain't the SAP Install," Says Sun's Schwartz

    Dell on Thursday came in with solid numbers for its second quarter ended July 30, casting a long dark shadow over Hewlett-Packard's pre-announcement earlier in the day and underscoring the fact that HP's problems are of its own making, not an industry thing.

    Dell's profits jumped 29% to $799 million, or 31 cents a share, on revenues that rose 20% to $11.7 billion. The results were in line with consensus and the company's revised guidance for July, which had increased its earning forecast by two cents.

    In Q2 last year, Dell earned $621 million, or 24 cents a share, on revenues of $9.78 billion.

    The company said global product shipments were up 19% in the quarter.

    On a conference call with analysts, Dell CEO Kevin Rollins bragged about Dell's "consistency of execution" and how it had met guidance for 14 consecutive quarters.

    Unlike HP CEO Carly Fiorina, Rollins said Dell saw no sales slowdown in the quarter. "I'm really surprised about some of the comments that I'm hearing about July." Rollins said, dissing Carly. Thursday morning Fiorina had said HP sales slowed toward the end of the quarter.

    Rollins said Dell sees "a strengthening corporate buying cycle and expects that to continue," again a clear contrast to Carly's cautious outlook.

    Dell CFO Jim Schneider said the company posted double-digit growth across all products, segments and regions.

    In contrasts to HP's feeble enterprise server and storage performance, Dell said server units shot up 31% in the quater external storage revenues were up 13%.

    Dell said it was seeing strong demand for mid-range storage systems with Dell/EMC SAN revenues up 36% on disk capacity growth of about 70%. As expected, revenues from the high-end EMC Symmetrix systems that Dell has been selling with some of its products fell. Dell has focused on the mid-range Clarions and scaled back Symmetrix sales.

    Notebook units were up 28%; desktop units grew 15%.

    Services revenues were up 35% driven by strong performance in professional and managed services.

    Software and peripheral revenues grew 31% worldwide and 47% in Europe.

    Dell, who's new to the printer game and long-term threat to HP's gold mine, the source of its profits, expects to sell five million units this fiscal year and exceed its goal of $1 billion in revenues.


    Dell plans to focus on expanding printer sales internationally during the rest of the year and fill out its product line. The company hinted that a color laser printer launch was in the offing.

    Dell's total revenues in the Americans grew 16% to $7.97 billion compared to HP's growth of 4%.

    Dell has $11.8 billion in the bank.

    This quarter, it is forecasting earning of 33 cents a share on revenues of $12.5 billion. It expects unit shipments to grow 9% sequentially or 21% year-over-year.

    Related Links:

  • "Is Carly Toast Yet?" - Maureen O'Gara on HP's Fiorina, Three Years On
  • "HP's Problem Ain't the SAP Install," Says Sun's Schwartz

  • More Stories By Maureen O'Gara

    Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at) or paperboy(at), and by phone at 516 759-7025. Twitter: @MaureenOGara

    Comments (1) View Comments

    Share your thoughts on this story.

    Add your comment
    You must be signed in to add a comment. Sign-in | Register

    In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.

    Most Recent Comments
    A Len 08/17/04 12:53:06 PM EDT

    I am annoyed by the continuous use of the words "Dis" and "Dissed" in this article. These people are not street-punks. They are CEOs. Also it produces a connotation that causes each CEO to appear as if he is actively insulting the other - it shows a definite unprofessionalism on the part of the author.