Dell sees Q2 revenues drop 8%
Revenues for Q2 FY13 slip to $14.5bn as desktop and mobility sales soften
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.