Dell reports 72pc fall in earnings on flat Q2 revenues

16 Aug 2013

In what may be the final earnings report from Dell as a public company, the computer giant reported flat revenues of US$14.5bn compared with the previous year. Net income was down 72pc to US$204m.

Dell’s PC division reported revenues of US$9.1bn, down 5pc. Operating income from this division was down 71pc to US$205m. Mobility revenues fell 10pc, desktops and thin client were down 1pc and peripherals were down 5pc.

According to IDC, Dell was the only global top 5 vendor to increase PC market share year-over-year in the last two sequential calendar quarters.

Dell’s Enterprise Solutions Group saw an 8pc increase in revenues, driven by a strong performance in its server, networking and peripherals group, as well as growth in data centre servers.

Dell Services reported a 3pc increase in revenues to US$2.1bn, driven by an increase in support and deployment revenue and a 5pc increase in infrastructure, cloud and security services.

Dell Software reported revenues of US$310m and recorded an operating loss.

In light of the ongoing merger plan, which it described as “definitive”, to take Dell private, the company did not provide an outlook for the next quarter.

“In a challenging environment, we remain committed to our strategy and our customers, and we’re encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our enterprise solutions, services and software businesses,” said Brian Gladden, Dell chief financial officer.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years