Dell reported net income of $545 million on revenue of $15.5 billion for the second quarter of fiscal 2010.

Dell's consumer business was its only segment to report a loss: consumer revenue was flat at $2.9 billion. Operating income was a $21 million loss, Dell said. SMB revenue was $3.5 billion, up 25 percent. Operating income was $323 million, a 32 percent increase.

Dell executives made reference to the Dell Streak, the company's first Android phone-cum-tablet. Michael Dell, the company's chief executive, said that Dell Inc. has a lot of people working on tablet and touch solutions, "and next year you'll see a lot more of them".

But revenues in the company's enterprise segment grew by 38 percent to $4.5 billion, with revenues for servers, services and mobility all improving by more than 50 percent. Operating income for the quarter was $288 million, a 68 percent improvement.

Dell said that it is seeing the effects of a corporate refresh cycle, with revenue in total mobility and desktop products growing 21 and 17 percent, respectively, driven by particular strength in large enterprise and small and medium businesses.

"We are positioned well to continue benefiting from the global corporate refresh underway in client and enterprise systems. This was a solid quarter highlighted by increasing revenues, operating income and cash flow" said Brian Gladden, Dell's chief financial officer, in a statement. "We continue to focus on improving operating income and executing on our long-term value-creation framework, while making key investments in solutions and resources."

In a conference call with Wall Street analysts, Gladden made reference to the "headwind" of component costs, which he referred to as "pretty dramatic". Potentially, those component suppliers could add manufacturing capacity, which hasn't yet come on line, he added.

Dell said it believes that the corporate client refresh is well underway and that demand will continue through the next several quarters. For the third quarter, the company expects seasonal improvements from federal government sales and commercial businesses, resulting in a pick-up in the low single digits. Dell reiterated its outlook provided in June, anticipating revenue growth for the year from 14 to 19 percent and non-GAAP operating income growth between 18 to 23 percent.