Dell reports 4pc drop in revenue to US$14.4bn
Michael Dell, Dell chairman and CEO
Computer maker Dell says it is progressing in its move to being a total enterprise services and solutions provider, and reported revenue for its fiscal 2013 first quarter of US$14.4bn, revealing a 4pc decrease from the previous quarter.
“We’re committed to continuing our strategy to re-shape Dell’s business as an end-to-end IT provider,” said Michael Dell, chairman and CEO.
“We saw continued progress in our first quarter with the innovative IT solutions we’re providing – notably our latest Dell servers, storage, networking and services that deliver customers enhanced productivity.”
GAAP operating income totalled US$824m, or 5.7pc of revenue. Non-GAAP operating income totalled US$1bn, or 7pc of revenue.
Earnings reached US$0.36 per share, down 27pc from the previous year, and non-GAAP EPS was US43 cents, down 22pc.
Cash used in operations in the quarter reached US$138m. For the past four quarters, Dell has generated US$4.9bn in cash flow. The company ended the quarter with US$17.2bn in cash and investments.
“We continued to shift the mix of our business during a challenging environment,” said Brian Gladden, Dell chief financial officer. “Our enterprise solutions and services businesses now account for 50pc of our gross margin, and we’ll continue to make the necessary investments to maintain our progress.”
The company expects second-quarter revenue to be up 2-4pc from first-quarter levels.