Soaring storage revenues helps Dell achieve record results

Nov 15, 2004: Dell's partnership with EMC has helped it achieve record results, with revenues from the storage systems the company's co-brand up 31 percent from the same period last year, with Dell's overall revenue up 17 percent.

The results somewhat bear out Dell CEO Kevin Rollins' assertion back in May, when he described the drop in quarterly storage revenue a "one-time aberration." Rollins claimed the dip was due to a change in product mix, as Dell focused more on selling the Clariion than Symmetrix.

Rollins reiterated that point at the announcement of the company's record quarter on Friday, saying Dell is "ramping down Symmetrix sales and ramping up Dell-EMC SANs."

He went on: "The record quarter is testament to the company's superb team executing a better business model," said Kevin Rollins, Dell chief executive officer. "An improving component cost environment further favours Dell, with customers and shareholders the primary beneficiaries."

Such growth is expected to produce quarterly revenue of about US$13.5 billion, up 17 percent, and earnings per share of 36 cents, a 24-percent increase.

Dell also established an industry record for worldwide shipments, selling a combined eight million standards-based servers, notebook computers and desktop computers in the quarter. The company's shipment growth of 22 percent - highlighted by a 35-percent increase in notebook computer volumes - was double the rate of the industry excluding Dell.

Related Article:

Structurally sound onshore and offshore, says Dell chief