Dell suffered a 33 percent decline in its first quarter financial results, posting a net income drop of $US310 million ($A317m) compared to the same period in 2011.
The company today reported net income of $US635 million for the quarter, down from $US945m in first quarter 2011.
Overall sales also dropped from $US15 billion in the previous corresponding quarter to $US14.4 billion.
Dell’s consumer business was the hardest hit, a result of the company’s move to reposition itself as an enterprise services and solutions provider. Sales were down 12 percent from the same period a year ago to $US3bn.
Dell also experienced a decrease in revenue from its large enterprise and public sector businesses of three and four percent respectively.
Large enterprise contributed $US4.4 billion in the quarter while public revenue came in at $US3.5 billion.
Buoyed by a renewed focus amid a significant marketing campaign, Dell’s enterprise solutions and services division grew 2 percent to $US4.5 billion in revenue, half the company’s gross margin.
Services on their own contributed $US2.1 billion in sales, a 4 percent jump from Q1 2011, while storage grew 24 percent and attracted $US423 million in sales.
"We’re committed to continuing our strategy to re-shape Dell’s business as an end-to-end IT provider,” CEO Michael Dell said in a statement.
“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.”
Dell expects second quarter revenue to be up between two and four percent sequentially quarter-on-quarter.
Copyright © CRN Australia. All rights reserved.
Issue: 330 | August 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.