Dell desktop, storage revenue drops in Q2

However, Dell reports strong profit growth in the second quarter

Dell had strong profit growth in the second fiscal quarter of 2012, although the company's revenue was hurt by a drop in sales of storage and desktop products, the company said.

On a GAAP (generally accepted accounting principles) basis, Dell recorded a net profit of $US890 million for the quarter ending on July 29, up 63 percent compared to the same quarter a year ago. The company recorded earnings per share of $US0.48. Net income on a non-GAAP basis was $US1 billion, an increase of 60 per cent, and 0.54 per share, $US0.05 above the consensus estimate from analysts polled by Thomson Reuters for earnings per share.

Dell's overall revenue grew by just 1 percent to $US15.7 billion, and the company's product revenue, minus software, was flat compared to the previous year. However, Dell's services revenue grew by 6 per cent year over year.

The company's revenue results were mixed across its enterprise and consumer product lines. Dell's desktop revenue was $US3.7 billion, dropping by 3 per cent compared to a year ago. Storage revenue was $US502 million, dropping by 20 per cent. The company's laptop revenue grew by just 1 per cent year over year to $US4.7 billion.

However, the company's server and networking revenue grew by 9 per cent to $US2.05 billion.

The company is trying to move to higher-margin areas to deliver better results, the company said in a statement. Dell said the demand for servers and services was solid during the second quarter.

"We continue to see great momentum in the high-growth areas of our business," said CEO Michael Dell in a statement.

To build its data-center technology stack, Dell last month acquired Force10 Networks, which the company hopes to close during the third quarter. Dell projects its third-quarter revenue to be flat relative to the second quarter, the company said.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags business issuesDellfinancial results

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?