Dell Shares Jump As Profits Almost Triple

Dell has reported a strong first quarter for fiscal year 2012, with its profits almost tripling year on year.

The company’s net income jumped to $945 million or 49 cents per share from last year’s $341 million, or 17 cents per share. Dell also reported a one percent rise in revenue at $15 billion. This is the second straight quarter in which the company has surpassed analyst estimates.

Dell’s exceptional first quarter comes as corporations significantly increased their IT spending. The company’s move to branch out into other businesses such as data centres is also paying off. The seven percent fall in consumer PC sales was cushioned by the rise in demand from these other businesses.

The company also expects a strong rise in revenue during the current quarter as small businesses, government organisations and schools continue to buy Dell PCs.

Investors seem happy with Dell’s earnings as Dell’s share price rose almost 5 percent to $16.76 per share in after-hours trading.

“We continue to build momentum with our strategy to expand our enterprise solutions and services business, and it’s contributing to our strong financial results,” said Dell chief financial officer Brian Gladden, AFP reports.

“We have built an $18 billion enterprise solutions and services business with exciting growth potential and our execution in the core client business continues to be very good. We are positioned to continue delivering value to our customers and investors.”