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Flat Shipments Hurt Dell Despite Increased Earnings By Jennifer LeClaire November 20, 2009 2:21PM Concerns that Dell isn't leading the PC market recovery hurt Dell's stock despite increased earnings and solid expectations. Dell's third-quarter revenue was up from the second quarter but down 15 percent from a year ago. International sales and revenue from servers and storage rose as Dell continues to absorb Perot Systems.   Related Topics Dell PC Market Earnings Servers Perot Systems Latest News Endeavour Inspected for Damage Autism Risk for Kids of Older Mothers Go Online and You Can Save the Planet In Haiti, Relief Gaps Are Spreading U.S. To Form Climate-Change Agency Dell's earnings are up and expectations are solid, but the company's stock still took a hit Friday afternoon after analysts signaled the company isn't playing a key role in the PC market recovery. Dell's shipments were flat in the third quarter and down five percent from the year-ago period despite improvements in the large-enterprise and small-and-midsize business segments and increased demand and revenue from business customers. Dell's total revenue for the third quarter was $12.9 billion, a one percent improvement over the second quarter but a 15 percent decline from the year-ago period. Earnings per share were 17 cents. Cash flow from operations totaled $801 million. Operating expenses were 12.8 percent of revenue, or $1.7 billion, 10 percent lower than last year's third quarter. "We are seeing improvement in overall underlying IT demand that is continuing into the fourth quarter," said Michael Dell, chairman and CEO. "The same is true with momentum in Dell's business, specifically in our large-enterprise and SMB segments. The launch of Windows 7 is being very well received by SMBs and consumers, and we'll see the benefits of that more fully in our fiscal Q4." An Active Third Quarter Dell had an active third quarter. The company completed the acquisition of Perot Systems in early November. Dell hopes the acquisition will give the company an advantage in delivering more practical solutions to help customers reduce IT costs. Dell is in the process of integrating Perot Systems into its business. "Consistently generating strong cash from operations allows us to expand our own capabilities and acquire new ones," said Dell CFO Brian Gladden. "Those investments will mostly be in higher-margin enterprise solutions, like our purchase of Perot Systems. Adding Perot best positions us to provide streamlined solutions that help customers get the most from their IT budgets." Dell had a strong quarter with its enterprise-systems business. Server and storage revenue were up a combined five percent with particular strength in year-over-year EqualLogic sales. Dell believes its strategy to design and deliver practical, standards-based solutions for the data center and the cloud is resonating with customers looking to reduce complexity, improve efficiency , and lower costs. (continued...) 1  |  2  |  Next Page >   Tell Us What You Think Your Comment: Also Visit: iPad Info Center Billions of Bytes Mobile Device Now Apple Info Center TopTechWire.com Advertisement  Enterprise Hardware 1.   Nvidia Auto-Switches Notebook GPU 2.   MS: Windows 7 Doesn't Hurt Battery 3.   IBM Power7 Server Takes on Big Load 4.   Embattled JooJoo Tablet To Ship Soon 5.   IBM Opens Cloud-Focused Data Center

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