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Dell Shows Double-Digit Income, Revenue Growth

11/22/2006 11:17:00 AM Eastern

Round Rock, Texas – Dell posted a net income of $677 million on sales of $14.4 billion in a preliminary report on its 2007 fiscal third quarter.

Revenue was up 11 percent for the period while net income rose 12 percent.

Dell said the quarterly report issued today is not final and is subject to change as the company is in the process of being investigated by the Securities and Exchange Commission and thus has not filed a 10-Q for its fiscal third quarter, ended Nov. 3.

Dell reported its largest sales segment during the quarter was desktop computers, generating 32 percent of all revenue. Mobility products were second with 27 percent, software and peripherals brought in 16 percent, enhanced services 10 percent, and servers and networking 11 percent and storage 4 percent.

The company also has added Dimension desktops and services to its rebate-free product offering. These products will no longer carry rebates of any kind, the company said. This is part of a Dell effort to simplify pricing and avoid customer confusion, said Rocky Mountain, home and small business group VP.

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