Dell's Fiscal 2013 Earnings Disappoint
May 23, 2012 10:00 AM
comment(s) - last by
Dell predicts modest growth for Q2
The computer market is showing signs of improvement after the significant downturn in the economy around the world over the last few years. The poor economy hit Dell hard as noted in the firm's fiscal 2013 first-quarter financial results announced this week. Dell managed to earn a scant $.36 per share on GAAP earnings and $.43 per share for non-GAAP earnings.
“We’re committed to continuing our strategy to re-shape Dell’s business as an end-to-end IT provider,” said Michael Dell, chairman and CEO. “We saw continued progress in our first quarter with the innovative IT solutions we’re providing – notably our latest Dell servers, storage, networking and services that deliver customers enhanced productivity.”
Revenue for the quarter was $14.4 billion, which is down 4% from the same quarter of the previous year. It's worth noting that the economy was even more sluggish in the same quarter of fiscal 2012. That $.36 per share GAAP earnings represents a 27% decline from the previous year and the non-GAAP earnings are a 22% decline from the previous year.
“We continued to shift the mix of our business during a challenging environment,” said Brian Gladden, Dell chief financial officer. “Our enterprise solutions and services businesses now account for 50 percent of our gross margin, and we’ll continue to make the necessary investments to maintain our progress.”
GAAP operating income for Dell during the quarter was $824 million accounting for 5.7% of revenue with non-GAAP operating income of $1 billion making up 7% revenue. Dell generated $4.9 billion in cash flow and ended the quarter with $17.2 billion in cash and investments.
Dell says highlights for the quarter were its enterprise solutions and services division that grew revenue 2% year-over-year to $4.5 billion. That division alone contributed half of Dell's gross margin for the quarter. Dell services revenue was up 4% to $2.1 billion and services backlog increased 9% to $15.4 billion. The biggest growth for Dell was in Dell-owned storage with a 24% growth to $423 million. Dell server networking revenue also grew 2%, but the company didn't offer monetary value for the growth.
Dell is looking forward to Q2 of fiscal 2013 and expects revenue to be in line with seasonal trends and grow 2% to 4% compared to Q1 revenue.
This article is over a month old, voting and posting comments is disabled
Fiscal 2013 Performance
5/23/2012 12:45:12 PM
Revenue in the quarter was $14.4 billion, a 4 percent decrease from the previous year.
GAAP earnings per share in the quarter was 36 cents, down 27 percent from the previous year; non-GAAP EPS was 43 cents, down 22 percent.
GAAP operating income for the quarter was $824 million, or 5.7 percent of revenue. Non-GAAP operating income was $1 billion, or 7 percent of revenue.
Cash used in operations in the quarter was $138 million. For the past four quarters, Dell has generated $4.9 billion in cash flow. Dell ended the quarter with $17.2 billion in cash and investments.
"Let's face it, we're not changing the world. We're building a product that helps people buy more crap - and watch porn." -- Seagate CEO Bill Watkins
Smart Security Cameras: 5 Good Choices For Any Budget
July 25, 2016, 7:13 PM
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Most Popular Articles
2 NEW PlayStation 4 Models - Unveiling September 7th
August 23, 2016, 6:23 AM
iPhones May Get Curved Screens Next Year
August 24, 2016, 6:45 AM
Drones at the Airport
August 26, 2016, 5:00 AM
5 Easy Ways to Lower Blood Pressure By Monique C. Bethell, Ph.D.
August 25, 2016, 8:00 AM
Say Goodbye to Data Plans - Sprint and T-Mobile offer Unlimited Data
August 22, 2016, 6:12 AM
Latest Blog Posts
First Self-Driving Car debut on the streets of Singapore
Aug 28, 2016, 4:10 PM
Coming Soon - Drones and Airports
Aug 24, 2016, 12:40 PM
SolarCity’s Gigafactory: A Milesone in Emerging Technology by Lily Emamian - 15 August 2016
Aug 15, 2016, 6:30 AM
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information