Texas-based technology company Dell reported late on Tuesday that its Q1 profits had almost tripled due to stronger than expected big business sales.
Net income according to the company jumped to $945m from $341m a year earlier and revenue rose 1 percent to $15bn. The technology stalwart saw operating income reaching $1.2bn, while enterprise solutions and services revenue was up 5 percent to $4.4bn led by a server revenue increase of 11 percent.
“We’re off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving,” said chairman and CEO Michael Dell.
The company now expects mid-single digit revenue growth in Q2, slightly above its normal, and sequential seasonal growth of 2 to 3 percent. Dell’s updated outlook for fiscal 2012 includes revenue growth of 5 to 9 percent and an increase in non-GAAP operating income growth of around 12 to18 percent.
CFO Brian Gladden noted: “We have built an $18bn enterprise solutions and services business with exciting growth potential and our execution in the core client business continues to be very good.