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Dell Releases Fiscal Year 2012, Fourth Quarter Financial Statements

[Techtaffy Newsdesk]

Dell’s revenues for the fiscal year 2012 was $62.1 billion. The company had earnings per share of $1.88, and revenue from enterprise solutions and services of $18.6 billion.

Revenue in the quarter was $16 billion, a 2 percent increase over the previous year. Dell had an extra week in its fiscal year 2012 that was incorporated into the company’s Q4. Revenue for the 2012 fiscal year was $62.1 billion, a 1 percent increase.

Earnings per share in the quarter was 43 cents, down 10 percent from the previous year. For the fiscal year, EPS was $1.88, up 39 percent year over year. Operating income for the quarter was $931 million, or 5.8 percent of revenue. For the fiscal year, GAAP operating income was $4.4 billion.

Cash flow from operations in the quarter was $1.8 billion, and Dell ended Q4 with $18.2 billion in cash and investments. For the fiscal year, Dell spent $2.7 billion to purchase 178 million shares of Dell stock.

 

Strategic Highlights:

Dell Services revenue grew 12 percent to $2.2 billion and represented 14 percent of Dell’s business. The transactional services business increased 14 percent with strong attach rates of Dell premium support services and the outsourcing business grew 8 percent. Services backlog increased 11 percent to $15.5 billion.

Dell-owned storage grew 33 percent to $463 million, led by offerings based on Dell-owned intellectual property, including Compellent, which had sequential growth of more than 60 percent.

Server and networking revenue grew 6 percent.

 

Business Units and Regions:

Large Enterprise had revenue of $4.9 billion in the quarter, a 5 percent increase with broad-based growth across both client and enterprise solutions and services. Services revenue increased 18 percent. Operating income for the quarter was $461 million, or 9.4 percent of revenue. Revenue for the full year was $18.5 billion, up 4 percent from the previous year.

Public revenue was $3.9 billion, a 1 percent decrease. The segment was affected by continued weakness in U.S. Federal and Western Europe. Services revenue increased 7 percent and Dell IP storage revenue was up 32 percent. Operating income for the quarter was $327 million, or 8.3 percent of revenue.

Small and Medium Business revenue grew 6 percent to $4 billion. Enterprise solutions and services revenue was up 18 percent during the quarter to an all-time high of $1.2 billion. Services growth was 28 percent in the quarter. SMB delivered $412 million in operating income, or 10.3 percent of revenue, driven by the better mix of higher-margin enterprise solutions and services.

Consumer revenue was $3.2 billion, a 2 percent decline for the quarter. Operating income was $39 million or 1.2 percent of revenue, a 43 percent decline. Revenue weakness was largely concentrated in the United States, while revenue from non-U.S. countries grew 10 percent.

Asia-Pacific and Japan revenue grew 10 percent – including 15 percent growth from China – and EMEA increased 8 percent in the quarter. Americas was down 3 percent. Revenue in Growth Countries – defined as those outside the U.S., Canada, Western Europe and Japan – increased 8 percent in the quarter and 12 percent for the fiscal year. Revenue in the BRIC countries increased 10 percent in the quarter and 15 percent for the fiscal year.

 

Company Outlook:

For fiscal 2013, Dell expects non-GAAP earnings per share to exceed $2.13 it delivered in fiscal 2012 and expects to continue strong execution, with cash flow from operations exceeding net income. For Q1, the company expects revenue to decline approximately 7 percent sequentially.

 

Upload: 02-25-12

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