- Revenue of $14.5 billion
- GAAP earnings of $0.42 per share, non-GAAP earnings of $0.50 per share
- Dell Enterprise Solutions and Services revenue grew 6 percent year over year to $4.9 billion; now represents more than 50 percent of company margin and more than a third of revenue
Dell announced fiscal 2013 second-quarter results today with revenue of $14.5 billion, GAAP operating income of $901 million, and earnings of $0.42 per share. Consistent with its strategy, Dell saw growth in its server, services and networking businesses.
"We're transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term," said Michael Dell, chairman and CEO. "We're clear on our strategy and we're building a leading portfolio of solutions to help our customers achieve their goals."
"Our performance in the second quarter provided another proof-point that our long-term strategy is right," said Brian Gladden, Dell chief financial officer. " W e continued our progress in shifting the mix of our business to higher-margin enterprise solutions, led by solid growth in our server, networking, services, and Dell IP storage businesses.
"Growth in our PC business was challenging, as we saw a tough macroeconomic and competitive environment, and continued to focus on higher-value solutions in this business," Mr. Gladden said.
- Revenue in the quarter was $14.5 billion, an 8 percent decrease from the previous year as desktop and mobility revenue contracted.
- GAAP operating income for the quarter was $901 million, or 6.2 percent of revenue. Non-GAAP operating income was $1.1 billion, or 7.8 percent of revenue. Gross margins for the quarter benefitted by approximately $70 million, or 50 basis points, primarily resulting from a vendor settlement.
- GAAP earnings per share in the quarter was 42 cents, down 13 percent from the previous year; non-GAAP EPS was 50 cents, down 7 percent.
- Cash flow from operations in the quarter was $637 million. Dell ended the quarter with $14.6 billion in cash and investments.
Fiscal-Year 2013 Second Quarter and Half Year Highlights
- Dell Enterprise Solutions and Services revenue grew 6 percent year over year to $4.9 billion and comprised 34 percent of Dell's consolidated revenue and more than 50 percent of its margin. This business is now approaching a $20 billion annual run rate.
- Server and networking revenue grew 14 percent.
- Revenue of Dell-owned storage increased 6 percent.
- Dell Services revenue was $2.1 billion, up 3 percent, with new signings of more than $1 billion in the first half of the year, and $1.8 billion over the last 12 months.
- Year to date Dell has announced six acquisitions and closed five, all of which will help drive a higher-value mix of solutions with more predictable revenue and margin streams. The company expects to close the pending acquisition of Quest Software in the second half of the third quarter.
Business Units and Regions:
- Large Enterprise revenue was $4.5 billion in the quarter, a 3 percent decline. Operating income was $433 million, or 9.5 percent of revenue. Enterprise Solutions and Services revenue increased 9 percent on 17 percent growth in server and networking revenue and 5 percent increase in services.
- Public revenue was $4.1 billion, a 6 percent decrease. O perating income for the quarter was $379 million, or 9.3 percent of revenue. Server and networking revenue increased 4 percent.
- Small and Medium Business revenue was $3.3 billion, a 1 percent decline. Operating income was $382 million, or 11.7 percent of revenue. Enterprise solutions and services grew 15 percent led by an increase of 27 percent in services revenue and 16 percent in servers and networking.
- Consumer revenue was $2.6 billion, a 22 percent decline. Operating income was $14 million or 0.5 percent of revenue.
- Revenue in Americas was down 6 percent; EMEA was down 7 percent, and Asia-Pacific and Japan revenue was down 12 percent. Revenue in BRIC countries was down 15 percent.
Dell expects continued solid growth in Enterprise Solutions, Services and Software and also a challenging end-user computer environment in the second half of the year. Given the uncertain economic environment, competitive dynamics and soft Consumer business, Dell expects third-quarter revenue to be down 2-5 percent from second-quarter levels. In addition, the company is modifying its full-year earnings outlook to at least $1.70 per share on a non-GAAP basis, which includes a 2-to-3 cent dilutive impact from its pending acquisition of Quest Software.
Latest News Posts
- MechWarrior 5: Mercenaries announced for 2018
- GIVEAWAY: Corsair Limited RM1000i Special Edition PSU
- Universal's 'The Mummy' returns in first teaser trailer
- Social media ad spending will hit $50 billion by 2019
- Enter our giant 'BFG' Blu-ray giveaway thanks to Disney!
- Gigabyte gaming 5 z170mx cant enable raid need help
- ASUS UX305UA - time till boot starts varies a lot
- Ga z170m d3h ddr3-cf seek bios non-k_oc and kaby_support
- ROCCAT SOVA MK Gaming Lapboard Review
- ASRock 990fx extreme4 & Fast- Ultra Fast Boot Issues
- ENERMAX launches REVOLUTION SFX, with the highest wattage 650W full modular SFX Model in standard 100mm depth
- Intel Extreme Masters Season 11 finals confirmed for two weekends in March with more than $600,000 in prizing
- Ultimate Media Ventures teams up with The Coalition for sanctioned December 18 Gears Of War 4 Pro-Am eSports Battle On The Strip Event
- Thecus introduces Scale-Out architecture to meet rising enterprise storage demand
- Plantronics launches RIG 800 series - first 24-hour wireless gaming headset