Record global product shipments, revenue, operating and net income, earnings per share and cash from operations made Dell`s fiscal third-quarter 2005 the best reporting period in its history.
Dell revenue increased 18% from the same quarter a year ago to $12.5 billion, led by continued strong growth of 27% in Europe, Middle East and Africa and 25% in Asia-Pacific and Japan. Growth in the US was led by a 20% increase in spending by business customers.
Earnings per share were 33c, up 27%, for the quarter ended 29 October.
"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.
"Dell`s disciplined focus on profitable growth around the world and across businesses continues to differentiate us in the market. We`ve been doing that for years."
According to Rollins, Dell`s fourth-quarter product shipments should be about 20% higher than in the same year-ago period. Such growth is expected to produce quarterly revenue of about $13.5 billion, up 17%, and earnings per share of 36c, a 24% increase.
In the third quarter, Dell`s operating profit improved to 8.8% of revenue, the company`s highest rate in four years. The company generated a record $1.8 billion in cash from operations, and total cash and investments rose to $12.4 billion. Dell spent $1.3 billion to repurchase 38 million shares of its common stock, bringing total shares repurchased year to date to 97 million-reducing weighted average shares outstanding by almost 3% for the year.
Dell posts strong growth in all global regions
Dell 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% - highlighted by a 35% increase in notebook computer volumes - was double the rate of the industry excluding Dell.
Third-quarter shipments in Europe, Middle East and Africa (EMEA) were up 31%, a 15-point premium to the rest of the market. Server shipments in the region increased 24%, earning Dell nearly two points of server market share for the quarter.
In Asia-Pacific and Japan (APJ), company-shipment growth of 25% was nearly three times the rate of the market excluding Dell. Revenue from enterprise systems, including servers and storage, increased 27%.
Dell also established an industry record for unit shipments in the US, surpassing five million systems in the quarter, and increased its market share by nearly two points to 33%. Among highlights in the Americas: revenue from small and medium-sized businesses increased more than 23%, and revenue outside the US was particularly strong, up 30% from the same year-ago period.
Servers, printers, services highlight product leadership
Dell`s 19% year-over-year increase in worldwide server shipments enabled the company to close the gap with the category leader by more than two share points. In the US, the company expanded its number one server position by nearly two points, to nearly 33%. A new Technology Business Review survey again firmly ranked Dell number one in customer satisfaction for standards-based servers.
Worldwide revenue from software and peripheral products increased 37% year-over-year. Strong customer demand has the company on track to exceed selling five million printers and generating more than $1 billion in imaging and printing revenue this year. During the third quarter, the company introduced its first generation of colour laser printers for business and institutional customers, as well as two new printers with advanced digital photography features for consumers.
Dell`s enhanced-services business continued to grow strongly, with a year-over-year revenue increase of 32%. Combined enhanced-services revenue for EMEA and APJ grew almost 60%.
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Dell Inc (NASDAQ: DELL) is a premier provider of products and services required for customers worldwide to build their information-technology and Internet infrastructures. Company revenue for the past four quarters totalled $47.3 billion. Dell, through its direct business model, designs, manufactures and customises products and services to customer requirements, and offers an extensive selection of software and peripherals. Information on Dell and its products can be obtained at www.dell.co.za.
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