Cutting Costs Sees an Increase in Profits for Dell

Good news recently came out of Dell as the computer company reported that its net income for the last quarter nearly tripled as Dell benefited from lower computer component costs and growth in certain areas of its more profitable product lines.

Dell's shares rose 5% in extended trading, beating analysts' adjusted net income estimates but coming a bit short of revenue estimates. For Dell's first three months, which ended on April 29th, Dell earned $945 million, which equals about $0.49 per share, which was higher than the $341 million, $0.17 per share of last year.

If you exclude one-time items, Dell earned $0.55 per share which easily beat the numbers expected by Wall Street. Analysts polled by FactSet estimated adjusted earnings of $0.43 per share. Revenue rose only 1% to $15.02 billion from $14.9 billion last year, which was short of the predicted $15.4 billion. Product revenue remained the same at $12.1 billion with services revenue rising 6% to $3.0 billion.

Dell's consumer section, which accounts for nearly 20% of the company's revenue, dropped 7% to $3.0 billion as well. Consumer demand also fell more than anticipated and in an interview, CFO Brian Gladden attributed some of the cause to "the market for consumer PCs being saturated in developed countries." He also added that "while tablet computers are still a small portion of the PC market, there's clearly an impact for them on consumer demand for traditional PCs."

Revenue from large enterprises increased by 5% to $4.5 billion with revenue from small and medium-sized businesses increasing 7% to $3.8 billion. Public sector revenue, on the other hand, saw a decline of 2% to $3.8 billion. Dell saw the biggest gain in servers and networking. In this category revenue rose 11% to $2.0 billion. Sales of desktop PCs fell 8% to $3.3 billion with mobile PCs rising 3% to $4.7 billion.

Dell has been working hard to increase their proportion of server computers, data storage devices and technology consulting services sold. According to Dell, these areas are more profitable than the company's base PC business. However, compared with one year ago, most of Dell's product categories accounted for nearly the same percentage of revenue and computers for consumers, and businesses continued to make up over half of Dell's revenue.

However, Dell's gross margin, which is still an indicator of the efficiency of Dell's business, came in at 22.9% which was higher than the 20.4% expected by analysts from Reuters. Dell's strategy of focusing on more profitable areas of business and cutting back on lower-margin offerings is working extremely well according to Gladden.

Andy Hargreaves, an analyst for Pacific Crest, thinks that Dell's gross margin is "impressive" and stated that "Dell should be able to keep it up for now." Hargreaves also stated, "They do have the potential to sustain margins long-term, but in order to do so they have to drive toward more services-oriented businesses."

Taking a look at this current quarter, Dell is predicting that revenue will rise by a percentage in the mid-single digits over the first quarter, slightly faster than its seasonal 2% to 3% growth. Analysts are expecting somewhere around $16 billion. Dell continues to expect revenue to grow 5% to 9% for the full fiscal year which implies a total of $64.6 billion to $67 billion with analysts expecting around $64.4 billion.

Dell saw shares rise $0.86, or roughly 5.4%, to a total of $16.76 in extended trading. The stock finished regular trading down $0.10 to $15.90.

Source: The Associated Press - Dell profit jumps as computer maker cuts costs

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Pirated Software Value is On the Rise

The Business Software Alliance (BSA) stated in their annual report that the revenue from software piracy in 2010 has reached record highs. The alliance stated that piracy worldwide is now costing the industry $59 billion. They also said that it seems as though the piracy is primarily occurring in emerging markets where PC growth is taking place.

In terms of piracy rates according to region, the central/eastern regions of Europe and South and Central America ranked the highest. The regions all tied at 64 percent. The BSA said that the commercial value of software piracy has grown 14 percent in a mere year.

The BSA represents the entire software industry. BSA president and chief executive Robert Holleyman said in a statement, “The software industry is being robbed blind. Nearly $59 billion worth of products were stolen last year — and the rates of theft are completely out of control in the world's fastest-growing markets. The irony is people everywhere value intellectual property rights, but in many cases they don't understand they are getting their software illegally."

The BSA reported that the global market for personal computers skyrocketed in 2010. As PCMag puts it, “for the first time, PC shipments to emerging economies outpaced those to mature markets, 174 million to 173 million.”

The BSA stated that “the problem is that people often do not realize the software they are using is illegal.” The BSA found that the most common form of piracy that was found in the emerging economies was when an individual would buy a single copy of software and then install it onto multiple computers. They also found that businesses were doing this as well. The organization discovered that an entire fifty-one percent of PC users (including businesses) in these emerging markets did not realize that installing a single copy of software onto multiple computers was illegal. A BSA spokeswoman said that they obtained all of this information from Ipsos and IDC. She also said that Ipsos surveyed more than 15,000 different consumer and business PC users to get the best possible picture of the “software load” per PC.

I don’t think that it is surprising that the piracy rates have gone up. Now, I’m not saying that it's right by any means. There is no gray area when it comes to piracy. It’s simply illegal, but with the economy in the state that it is, there really isn’t any extra cash floating around to buy multiple copies of software when you can really just use one. I’m not saying it's right, but it does make sense that the rates are setting records.

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PQI Debuts World's Smallest USB 3.0 Flash Drive

I love USB flash drives. I think these little suckers are one of the best things to hit computers since sliced bread. I used a flash drive almost every day this past semester of school and boy was it a nifty thing to keep around. Almost every piece of school work I had to do this past semester is on my trusty 2GB Toshiba flash drive.

Now, my flash drive is your average one. It is nearly the same size as all other flash drives and is able to be clipped on my key chain or stuck in my pocket.However, I'm sure there are some of you reading this that prefer your flash drive to be tiny and really easy to carry around with you.

Well, if tiny is how you like your gear, then you will definitely want to check out the newest USB 3.0 flash drive released by PQI because this little guy is just that, little. This newest flash drive out of PQI is known as the Traveling Disk Drive U819V and is, as PQI claims, the smallest USB 3.0 flash drive in the world.

When PQI says that this thing is small, they mean that this thing is small. The U819V measures a mere 3cm long and comes with a removable cap that is attached to the USB drive via a lanyard. The U819V uses COB encasement technology which surrounds the components in order to keep them cool by helping dissipate the heat generated while in use. The arch nemesis to technology is heat, especially when it comes to memory that loses performance as it heats up.

You can get the U819V in a plethora of storage sizes ranging from 4GB up to 32GB if you really really need all that space. The device measures 3.15 x 14.8 x 7.3mm making it the perfect size to lose as soon as you open it. It weighs 3.6 grams and works with both USB 2.0 as well as USB 3.0 ports. Data transfer when connected to USB 3.0 is claimed to be 5Gbps, which is pretty good.

Pricing of the U819V has yet to be determined but don't be surprised if these little buggers are a little more expensive than your run of the mill flash drives. Word of warning, don't blow a lot of money on the 32GB if you are in the habit of losing things.

Source: SlashGear - PQI outs world's smallest USB 3.0 flash drive

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Scientists Try to Make a Schizophrenic Computer

So, in my time as a blogger I have written about some pretty interesting things. I have also written about some pretty strange things and even some downright absurd things. However, this story may just be in a league of its own.

A recent study by researchers at the University of Texas in Austin along with researchers from Yale University was set on creating the thinking of a schizophrenic mind on a computer. Yeah, that's right, they are trying to make a computer a schizophrenic by using a virtual network.

Their research is based on something known as the hyperlearning theory of schizophrenia. This theory maintains that the disease schizophrenia stems from an inability to forget or ignore non-essential information.

In their work, the research teams taught a series of stories to a computer model known to them as DISCERN. Using natural language processing, the computer is able to map out the different stories in a manner similar to the human brain. In the researchers' model, a simulated dopamine release was used to mark significant information as DISCERN learned the stories. What this means is that DISCERN more or less forgot less and perceived more information as being important.

When the researchers asked DISCERN to recant the stories, the computer did so while producing strange and delusional narratives from the information it was given. According to the Science Blog, "After being re-trained with the elevated learning rate, DISCERN began putting itself at the center of fantastical, delusional stories that incorporated elements from other stories it had been told to recall. In one answer, for instance, DISCERN claimed responsibility for a terrorist bombing."

The Science Blog went on to say, "In another instance, DISCERN began showing evidence of "derailment" - replying to requests for a specific memory with a jumble of dissociated sentences, abrupt digressions and constant leaps from the first- to the third-person and back again."

Even though this study is very interesting and the computer did show similarities to actual schizophrenic symptoms that were disturbingly similar, DISCERN is not concrete proof of the hyperlearning hypothesis. It is simply a simulation and the relevance of the output is interpreted by humans. However, the unique approach to the study, modeling a cause of a brain disorder and comparing the results to actual cases, is stunning overall and could even prove to be a powerful new tool for doctors, psychologists and psychiatrists.

Source: Geekosystem - Scientists Attempt to Induce Schizophrenia on a Computer

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Bing's Shopping Section Gets a Revamp from Microsoft

The next couple of weeks are going to be pretty busy for most, what with Mother's Day, summer vacation and school graduations all on the horizon. Well, because of that, Microsoft has given the shopping section of its Bing search engine a little bit of a makeover which includes the ability to link it to Facebook accounts.

With this new integration into Facebook, users can be reminded of their friend's and family's birthdays and even share their shopping lists with them according to a report by Microsoft.

Other changes include a redesigned shopping home page with a new layout that is specifically designed to give more prominent placement to top search results, popular products and even related articles with the intention of making things easier and faster to scan this information.

A revamped results page now features bigger images at the top of the screen. It also offers more filters in order to fine-tune results and even let users hover over different items in order to trigger the display of additional product information.

Even though Google is the top search engine without a doubt, Microsoft keeps on chugging along, investing heavily in Bing for years now. Officials from Microsoft maintain that there are big opportunities set to radically improve the search user experience. Microsoft also stated that if it continues innovating with Bing, it could definitely make a run at Google.

However, that doesn't mean that Google is just going to sit there and take it. The search master is constantly improving algorithms in order to make sure it retains users' loyalty and defends its core market.

To improve its chances against Google, Microsoft as well as Yahoo are both implementing a search partnership. However, last week Yahoo's CEO Carol Bartz stated that Microsoft's AdCenter search ad system isn't yielding the results the companies have expected. However, both Yahoo and Microsoft have both said that they are confident that improvements to AdCenter will boost its revenue-per-search rate to the expected levels before the year is up.

Source: PCWorld - Microsoft Revamps Bing Shopping Section

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Top Desktops Available

Desktop computers have come a very long way over the years. They used to be big, boring boxes that took up tons of space, but they have transformed into new, chic, flashy tools that can do almost anything.

The price of a desktop can range from as low as $250 to as high as $5,000. That’s a really big range, so how do you know which desktop will meet all of your needs? Well, here is a list of the top 8 desktops currently on the market. These desktops include all of the features that you could ever need and price tags that won’t break your budget.

Asus All-in-One PC ET2400IGTS-B008E
$1249.99 at Amazon

Some reviews compare this incredible desktop to Apple’s 21-inch iMac. The Asus All-in-One PCET2400IGTS-B008Eoffers a huge touch-sensitive screen, a quad-core processor, USB 3.0 ports, Blu-Ray, 1080p HD, SonicMaster Audio, HDMI, VGA-in, and wireless keyboard, mouse, networking, and IR remote. It does have a bit of bloatware and the apps are not particularly well-integrated, but those really aren’t a big deal in comparison with all of the great features that this has to offer.

Dell Inspiron i580-8139NBC
$499.98 at Staples

The Dell Inspiron i580-8139NBC is an incredible deal. It has a Core i3 processor, HDMI port, no bloatware, and expandability. The big issues are that it doesn’t have USB 3.0 or Wi-Fi. If you’re looking for a nice PC with all of the basic functionalities and a great price, this is the desktop for you.

Dell XPS x8300-5215NBK
$1099.99 at Best Buy

The Dell XPS x8300-5215NBK is considered to be a rather high-end desktop PC. It features high-end 3D graphics, a card retention bracket, HDMI DisplayPort, 8GB of memory, 1.5TB hard drive, and a Second Generation Intel Core processor. One thing that I was very disappointed not to see on this PC was a Blu-Ray player, but all of these other great features seem to make up for it.

Digital Storm Black Ops Enix Edition
Around $3,625

Obviously from the price tag, this desktop is definitely on the high-end list. Most people aren’t usually looking to spend this much money on a gaming desktop, but if you are, this chic PC is a great option. It has incredible performance, Blu-ray, USB 3.0 port, no bloatware, and a great cooling system. One of the biggest issues with this desktop though is that it is not easy to get into and there is no internal upgrade room, but if you can look past these few things and you have the money to spend, this is the gaming desktop for you.

HP Compaq 4000 Pro
Around $550

This is a great value desktop. It doesn’t necessarily have all of the bells and whistles, but it includes everything that you really need. It is compact, offers expansion room (including the space for a second hard drive), and built-in dual monitor support. It doesn’t have TPM, only two memory slots, or any eSATA or DisplayPort. For a fair price, you can get everything that you really need from a desktop.

HP TouchSmart 310-1125y
$699.99 at Best Buy

The TouchSmart 310-1125y offers some incredible features for the price tag. It has an incredibly responsive touchscreen with full touch interface, a wireless keyboard and mouse, and fantastic entertainment options. It does only offer 1,600 x 900 screen resolution and low-powered 3D graphics, but when you consider everything that it has to offer, it is a great entry level touchscreen desktop.

Lenovo IdeaCentre K330-11691AU
$599.99 at Best Buy

The Lenovo IdeaCentre K330-11691AU features up-to-date components that should keep you content with the desktop for as long as 5-7 years. It has a second generation Intel Core i-processor, no bloatware, HDMI, and an incredibly easy to upgrade tool-less interior. It offers some great, new technology that should keep it going for quite some time.

Lenovo ThinkStation C20
Around $4,600

So yes, the Lenovo ThinkStation C20 is quite possibly a bank breaker, but of course, there’s a reason for the high price tag. The desktop includes dual CPU Xeon power, ISV certification for a variety of different professional programs, card retention, and a 3-year warranty. It also is rack mountable, compact, and capable of driving two 30-inch panels simultaneously; however, it still is pricey and offers no USB 3.0 or FireWire.

These are the top desktop computers on the market today. If you're looking for a new, chic desktop PC, you should definitely look into one of the computers above.

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Microsoft's Office 365 Goes Open Beta

Microsoft has finally opened the door to its cloud-based Office 365 and is now offering the service as a public beta for anybody and everybody to try out. The beta is available in 38 countries as well as 17 languages. The new beta also follows several months of limited testing with a few thousand businesses that were able to take the service out for an early test drive. After this public beta, Office 365 will officially launch later this year.

Office 365, which was unveiled last October, is Microsoft's attempt at offering businesses a cloud-based alternative to some of the company's more traditional desktop and server products. Office 365 combines Office Web Apps with hosted versions of Exchange and SharePoint as well as Microsoft's Lync product. The Lync product provides the online communication and collaboration element of Office 365.

With all of this, Office 365 is designed to offer a plethora of features including document creation, document sharing, e-mail, IM, online meetings and public Web sites. Microsoft has also included protection in the form of its enterprise ForeFront security client and is also promising a 99.9% uptime for the entire service.

Once Office 365 officially launches it will be offered as two separate plans depending on the size of your company. Small businesses with around 25 employees or less can pay $6 per person per month to receive Office Web Apps and the hosted versions of Exchange and SharePoint. Larger corporations will have to chose from one of four different plans geared toward faculty, staff and students.

In addition to Office 365 being offered as a beta, Office 365 Marketplace is in beta form as well. Office 365 Marketplace is designed to supplement Office 365 and tries to help businesses find apps and services offered by different Microsoft partners. Reports from users already experiencing the beta have noted that everything is working as Microsoft has advertised it to.

Source: CNET - Microsoft opens up Office 365 as public beta

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