Dell's total revenue for the quarter ended 29 January was $14,9-billion, an 11% increase from a year ago and a 16% sequential gain. Revenue improved in all of Dell’s business segments as the company consolidated results from the former Perot Systems for the first time.
Cash flow from operations was $1,3-billion for the quarter and $3,9-billion for the full fiscal year. Dell ended the quarter in which it completed the acquisition of Perot Systems with $11,8-billion in cash and investments.
Product shipments increased 16% (11% sequentially), led by an 18% rise in Dell’s Small and Medium Business unit and a 29% increase in Consumer. Notebook shipments were up 32% year-over-year.
GAAP gross margin was 16,6% of revenue. Non-GAAP gross margin was 17,4% of revenue, pressured by seasonal strength in consumer demand, which has lower margins.
GAAP operating income was $510-million, or 3,4% of revenue. Non-GAAP operating income increased 11% to $798-million, or 5,4% of revenue.
Michael Dell, chairman of the board and CEO, says: “Our solutions portfolio is expanding rapidly, driven by our strong capabilities, ongoing innovation and smart acquisitions. We continue to listen to and engage closely with customers through millions of conversations and interactions each day, enabling Dell to provide more relevant, value-oriented solutions to help meet their unique needs.”
According to Brian Gladden, chief financial officer: “We achieved solid revenue growth in every part of our business. Our commercial units are well poised for profitable growth as demand continues to return because we’re meeting customer requirements for higher-value, higher-margin servers, storage systems and services. For the full year, we generated $3.9 billion of cash flow from operations – more than twice the amount in the prior year.”
Dell saw demand in the important commercial business continuing to return during the fourth quarter and is cautiously optimistic that this trend will continue into fiscal-year 2011. The company is confident in its ability to deliver the right technology to commercial customers and believes its extensive and ongoing cost actions position it well for this environment of increased demand.
Longer term, the company is confident it can generate growth in revenue, operating-income margin and cash flow from operations.