Dell’s third-quarter revenue drops 11pc to US$13.7bn

16 Nov 2012

Dell’s revenue and profits for the third quarter have taken a hit as a result of a weak PC market. The company reported revenue of US$13.7bn, an 11pc decrease from the previous year.

Dell’s net income amounted to US$475m, or US$0.27 per share, down from US$893m, or US$0.49 per share, from a year earlier.

However, Dell’s Enterprise Solutions and Services revenue grew 3pc year-over-year to US$4.8bn.

“In a difficult global IT spending environment we saw solid proof points that demonstrate progress in our strategy,” said Brian Gladden, Dell CFO.

“A highlight has been the strong progress of our newly introduced servers, with our server and networking business up 11pc. We’re also encouraged by early interest in our new Windows 8 touch portfolio and the opportunities it creates for our commercial and consumer businesses. ”

Last month, Gartner Inc reported that worldwide PC shipments declined 8pc in the third quarter, which can be attributed to consumers’ increasing adoption of smartphones and tablet computers.

Tina Costanza was a journalist and sub-editor at Silicon Republic