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Dell Profits Up 24 Percent: Thanks PowerEdge

Dell Inc. on Thursday reported hefty increases in profits and revenue that were helped by strong sales in server computers and storage products.

The Round Rock, Texas, computer maker said revenue for the fiscal fourth quarter ended Jan. 30 was $11.5 billion, an 18 percent increase over the same period a year ago. Net income increased to $749 million, or 29 cents a share, up 26 percent from a year ago.

"Much of the industry's quarterly growth was at the low ends of the desktop and notebook categories, which offer little if any profitability," Kevin Rollins, president and chief operating officer for Dell, said in a statement. "Dell met its operating targets by pursuing profitable growth."

Shipments of the company's PowerEdge servers jumped 40 percent from the same quarter a year ago, while storage revenue was 47 percent higher. Overall, product shipments were up 30 percent in Europe, the Middle East, Africa, Asia-Pacific and Japan, and more than 20 percent in the Americas.

For the full year, Dell reported sales of $41.4 billion, operating income of $3.5 billion and earnings of $1.01 a share.

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