Considering the amount of coverage Apple gets every time it opens a window, it can be easy to forget tha there are indeed other companies out there making computers. While they may not be as sexy as the Steve Jobs helmed company, Dell continues to plug along, and although it has had some issues with profitability in the past, if this past quarter is anything to judge by, those days may indeed behind them now.
Net income for the third quarter ending Sept. 30th was $822 million, or 42 cents per share. This was an increase of 144 percent over the same time last year which was $337 million or 17 cents per share. Analysts had only been expecting net income of $637 million and 28 cents per share, so the predictions were way off.
This unexpected growth came in the commercial sales to small businesses as well as enterprise accounts. This division grew by 24 percent over the previous year for the same time period and has now surpassed the end user sales of the company.
CEO Michael Dell said:
Our strong results demonstrate that we are listening to customers and delivering what they want. It validates that our strategy to offer choice and efficiency at every level of the IT enterprise computing stack is taking hold, and we are more focused than ever to being a true partner–not merely a provider–to our customers. Dell is growing in the right areas, and I’m very excited about our momentum.
The question is if they can keep the momentum up. With a heavier focus on commercial contracts, companies tend to cut back on spending in the fourth quarter due to tax reasons, so Dell will have to concentrate on consumers for the end of the year.
Hopefully this report is a sign of good things to continue to come for the company.