Dell has revealed a 4.8 per cent drop in profits in its fourth quarter results, despite rising revenues.
Total revenue in the quarter ended 29 January was $14.9bn (£9.67bn), the company reported, an 11 per cent rise from a year ago. Net income dropped to $334m (£217m) compared to $351m (£228m) this time last year.
"We achieved solid revenue growth in every part of our business," said Brian Gladden, chief financial officer at Dell.
"Our commercial units are well poised for profitable growth as demand continues to return because we are meeting customer requirements for higher-value, higher-margin servers, storage systems and services.
"For the full year, we generated $3.9bn [£2.5bn] of cash flow from operations, more than twice the amount in the previous year."
Dell blamed the fall in profits on rising component costs, especially memory chips, and the fact that consumers, not enterprises, had driven PC sales growth. Consumer machines typically have lower margins than enterprise hardware.
The company's weakness in the enterprise is a worrying aspect of the results. Dell's large enterprise sales rose just eight per cent, compared to small and medium sized businesses at 10 per cent and consumer sales at 11 per cent.
Revenues from services rose 51 per cent, after the company's acquisition of Perot Systems.
"Our solutions portfolio is expanding rapidly, driven by our strong capabilities, ongoing innovation and smart acquisitions," said Dell chairman Michael Dell.
"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."
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