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Dell profit down 47%

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DQI Bureau
New Update

Dell announced fiscal 2013 third-quarter results today with revenue of $13.7 billion, GAAP operating income of $589 million, and GAAP earnings of $0.27 per share. Dell's enterprise solution strategy continued to show positive results with server and networking revenue increasing 11 percent year over year.

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Though its server and networking revenue shows positive sign still its third-quarter earnings fell 47% as the computer giant again recorded weaker personal computer sales. Dell has now posted four straight quarters of profit declines as the PC market faces growing pressure from tablet computers, intense price competition and macroeconomic uncertainty.

The company in recent years has looked to move beyond its core personal-computer business and broaden its own portfolio of products for corporate customers..

"We are consistently executing our end-to-end solutions strategy for the benefit of our customers," said Michael Dell, Chairman and CEO. "In the quarter, we completed the acquisition of Quest Software which - along with other recent acquisitions like SonicWALL and Wyse - adds leading management, security, virtualization and cloud capabilities to our expanding portfolio of powerful solutions."

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

Business Units and Regions:

Large Enterprise revenue was $4.2 billion in the quarter, an 8 percent decline. Operating income was $325 million, or 7.8 percent of revenue.

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Public revenue was $3.8 billion, an 11 percent decrease. O perating income for the quarter was $352 million, or 9.2 percent of revenue.

Small and Medium Business revenue was $3.3 billion, a 1 percent decline. Operating income was $349 million, or 10.6 percent of revenue.

Consumer revenue was $2.5 billion, a 23 percent decline. Operating loss was $65 million or minus 2.7 percent of revenue.

Revenue in Americas was down 9 percent; Asia-Pacific and Japan was down 11 percent; and EMEA was down 15 percent.

The company expects sequential revenue growth of 2 to 5 percent. For the full year, Dell maintains its expectation for at least $1.70 in earnings per share on a non-GAAP basis. Going forward, the company is committed to its end-to-end solutions strategy and creating value over the long term.

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