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Dell sees Q2 revenues drop 8%

Revenues for Q2 FY13 slip to $14.5bn as desktop and mobility sales soften

Dell is on track with its long term strategic shift, says Dell.
Dell is on track with its long term strategic shift, says Dell.

Dell has reported an 8% drop in revenues for the second quarter of financial year 2013. Revenues were down to $14.5bn, from $15.6bn in the same quarter last year.

The company said desktop and mobility revenues were down, with consumer revenue showing a 22% drop to $2.6bn and SMB business group revenues down 1%.

Operating income from the quarter was also down 21%, from $1.1bn in Q2FY12 to $901m this year.

The company reported server and networking revenue was up 14%, storage revenue up 6% and Dell Services revenue grew 3% in the quarter.

Dell Enterprise Solutions and Services revenue grew 6% to $4.9 billion, to account for more than 50% of company margin and more than a third of revenue.

"We're transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term," said Michael Dell, chairman and CEO. "We're clear on our strategy and we're building a leading portfolio of solutions to help our customers achieve their goals."

"Our performance in the second quarter provided another proof-point that our long-term strategy is right," said Brian Gladden, Dell chief financial officer. "We continued our progress in shifting the mix of our business to higher-margin enterprise solutions, led by solid growth in our server, networking, services, and Dell IP storage businesses.

"Growth in our PC business was challenging, as we saw a tough macroeconomic and competitive environment, and continued to focus on higher-value solutions in this business," Gladden said.

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