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Dell Sings EMC Song

Dell posts record storage results, boosted by sales of EMC's Clariion. Can they keep it up?

Dell Computer Corp. (Nasdaq: DELL) continues to defy the technology industry slowdown, posting its best-ever quarterly product shipments, revenue and operating profit, driven significantly higher by storage sales, the company says (see Dell Breaks Q4 Revenue Record).

Dell yesterday reported a profit of $603 million, or 23 cents a share, for the quarter ended Jan. 31, 2003. In the same quarter a year ago, it earned $456 million, or 17 cents a share. The company's overall revenues rose 21 percent to $9.74 billion, compared with $8.06 billion a year earlier.

For Byte and Switch readers interested in Dell's long-term storage goals, the company appears to be right on track: Its external storage sales for the quarter grew to $300 million, up 87 percent year-over-year (after a 73 percent year-over-year increase in Q3 2002) and 15 percent sequentially.

The PC giant claims to have won more than 1,000 new storage customers through its partnership with EMC Corp. (NYSE: EMC) during the quarter, for a total of 2,500 joint customers over the year (see EMC and Dell Double-Down).

New customers won in the fourth quarter include: the Tribune Co., Select Comfort, Alaska Communications, Benelogic, The Bombay Company, Computer Sciences CSC Ltd., Cox Communications, Mercedes Benz, Reckitt Benckiser, United States Military Academy, West Point, University at Buffalo/The State University of New York, and Warburg Dillon Read (see Rackspace Picks Dell/EMC, Dell/EMC Roll Up Chicago Trib, Dell, EMC Get Bed Rest, and Benelogic Selects Dell, EMC).

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