Printed from http://www.electronista.com

Dell posts massive hit to earnings per share, nearly no growth

updated 07:39 pm EDT, Thu August 15, 2013

Revenue static year-over-year, earnings per share down by 71 percent

Dell today announced fiscal 2014 second quarter results, with essentially unchanged revenue year-over-year of $14.5 billion. Income plummeted to $204 million, making earnings per share $0.12, down a remarkable 71 percent since the same time period in 2013. The company's Enterprise Solutions, Services and Software (ES&S) revenue was $5.8 billion, growing nine percent year over year, including the benefit of the Quest acquisition. In End User Computing, revenue was down five percent year over year.

Enterprise Solutions Group revenue was $3.3 billion, an eight percent increase. Operating income for the quarter was $137 million, a nine percent decrease. Dell server, networking and peripherals revenue increased 10 percent, the fifth consecutive quarter of growth for this business -- driven by continued strength in hyper-scale data center servers. Dell networking continued to grow, with a 19 percent revenue increase. Dell storage revenue declined seven percent.

Dell Services revenue was $2.1 billion, up two percent, driven by a three percent increase in support and deployment revenue and a 5 percent increase for infrastructure, cloud and security services revenue. Applications and business process services revenue declined 6 percent. Total Services operating income was $339 million, a one percent increase. Dell Software revenue was $310 million, and recorded an operating loss. The company is continuing to enhance its software capabilities with investments in this business that increase R&D and sales capacity.

End User Computing revenue was $9.1 billion in the quarter, a five percent decrease despite increasing shipments overall worldwide. Operating income for the quarter was $205 million, a 71 percent decrease. Dell desktop and thin client revenue increased one percent, mobility revenue declined 10 percent, and revenue from software from third parties and peripherals declined five percent.

Dell refused to provide third quarter financial estimates, given the contentious privatization offer on the table. "In a challenging environment, we remain committed to our strategy and our customers, and we're encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our Enterprise Solutions, Services and Software businesses," said Brian Gladden, Dell chief financial officer, of the results.



By Electronista Staff
Post tools:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Lemur BlueDriver

"Oh no, the check engine light is on…again! What one of the hundreds of reasons could it be this time? Probably going to cost a fort ...

Sponsor

toggle

Most Commented

 
toggle

Popular News