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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
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