Dell now believes revenue for its fiscal third quarter, which ends Nov. 1, will reach a company-record $9.1 billion, up 22% from one year ago. In mid-August, the company had forecast revenue of $8.9 billion. Earnings per share are expected to be 21 cents, at the high end of the initial guidance range and more than 30 percent better than in last year’s third quarter. Those results would represent sequential improvement in operating margins.
According to Chairman and Chief Executive Officer Michael Dell, the company’s momentum with customers remains broad-based, highlighted by growth in shipments of servers and storage systems. He said Dell’s way of doing business is best suited to accommodate widening preference for standards-based computer systems and services.
The customer trend toward standards is unmistakable and has been going on almost as long as there’s been information technology, said Dell. The movement is accelerating, and reaching deeply into enterprise computing, because standards-based products and services are flexible, scalable and simple, and offer great value.
Our people are focused on customer requirements, cost leadership and exceptional execution, and those disciplines are distinguishing Dell in the marketplace.
Dell said the company will achieve more than $1 billion in cost savings this year, from areas including product design, manufacturing and logistics, operating expenses and warranty costs.
