Dell Reports First Quarter Financial Results

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[Techtaffy Newsdesk]

Dell has announced its fiscal 2013 first quarter results.  Revenue for the quarter was $14.4 billion, with operating income of $824 million, and earnings of 36 cents per share.

Results

  • Revenue in the quarter was $14.4 billion, a 4 percent decrease from the previous year.
  • Earnings per share in the quarter was 36 cents, down 27 percent from the previous year.
  • Operating income for the quarter was $824 million, or 5.7 percent of revenue.
  • Cash used in operations in the quarter was $138 million. For the past four quarters, Dell has generated $4.9 billion in cash flow. Dell ended the quarter with $17.2 billion in cash and investments.

Strategic Highlights:

  • Dell Enterprise Solutions and Services revenue grew 2 percent year over year to $4.5 billion and contributed half of Dell’s gross margin. The ESS revenue grew 5 percent excluding third-party storage.
  • Dell Services revenue was $2.1 billion, up 4 percent. Services backlog increased 9 percent to $15.4 billion.
  • Dell-owned storage grew 24 percent to $423 million.
  • Server and networking revenue grew 2 percent.

Business Units and Regions:

  • Large Enterprise revenue was $4.4 billion in the quarter, a 3 percent decline. Operating income for the quarter was $402 million, or 9.1 percent of revenue.
  • Public revenue was $3.5 billion, a 4 percent decrease. Operating income for the quarter was $271 million, or 7.8 percent of revenue.
  • Small and Medium Business revenue grew 4 percent to $3.5 billion. Enterprise Solutions and Services revenue increased 17 percent, led by services revenue growth of 23 percent and servers and networking of 16 percent. SMB had $389 million in operating income, or 11.2 percent of revenue.
  • Consumer revenue was $3 billion, a 12 percent decline. Operating income was $32 million or 1.1 percent of revenue.
  • Asia-Pacific and Japan revenue was flat but China increased 9 percent. EMEA revenue was down 1 percent in the quarter. Americas was down 7 percent. Revenue in the BRIC countries increased 4 percent.

Company Outlook: Dell expects second quarter revenue to be in line with historical seasonal trends and be up 2-4 percent from first-quarter levels.