Personal computer maker Dell Inc. said that its net income for the latest quarter more than doubled as companies spent more to replace aging technology.
Businesses of all sizes, plus government agencies and other public-sector customers, spent more with Dell in the quarter. Large enterprise revenue jumped 27 % to $4.3 billion from a year ago, and small and medium business revenue rose 24 % to $ 3.7 billion.
Revenue from consumers Dell's smallest customer segment in the quarter increased 4 percent to $3 billion. Desktop and laptop computers made up about 56 percent of Dell's revenue in the quarter.
PCs are less profitable than Dell's technology consulting services and other smaller slices of Dell's business, but the company still managed to improve gross margin - a measure of profitability.
For the current fourth quarter, Dell indicated that gross margin would not be as strong. During a conference call with analysts, Gladden said less-profitable consumer PCs would make up more of the computers sold in the quarter. He also said component prices were bottoming out, and wouldn't provide as much of a lift.
For the full fiscal year, which ends in January, Dell said it expects revenue around the midpoint of its earlier guidance for an increase of 14 percent to 19 percent from last year. That would put fiscal 2011 revenue at about $62 billion. Analysts are currently predicting $62.4 billion.
Gladden also shot down rumors that Dell is planning to go private. Shares of Dell, which is based in Round Rock, Texas
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