Dell Posts Decline in Revenue, Increase in Profits for Q3 2011

Computer maker Dell reported a drop in revenue during the third quarter but its earnings rose significantly.

According to PC World, the company reported a revenue of $15.37 billion during the third quarter, a drop from $15.4 billion from the third quarter last year. Analysts were expecting revenue of $15.6 billion.

The company continues to steer away from the loss making PC business, which has hit by a poor demand, and is focusing on non-PC businesses like data centres and servers.

Dell revealed that its mobility, desktop and storage divisions posted a drop in revenue but, its enterprise solutions business, which offers servers and data centre gear, posted a rise in revenue of 8% to $4.7 billion.

Dell's profit on the other hand, increased to $893 million or $0.49 per share during the third quarter, beating analyst estimates of $0.47 earnings per share. The company had reported a profit of $822 million, or $0.42 per share in the third quarter last year.

"We delivered strong third-quarter results, maintaining our focus on operating income and improving our mix of higher-value enterprise solutions," said Brian Gladden, Dell chief financial officer.

Gladden has warned that the recent floods in Thailand could lead to increase in prices of its computers as the global cost of hard drives would be increasing.