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Dell posts $14.5 billion for Q2, consumer revenues tumble

updated 08:01 pm EDT, Tue August 21, 2012

Services, servers up, American revenue down

Dell announced its fiscal 2013 second-quarter results today, revealing that the company's consumer segment took a considerable hit versus the same quarter last year. The company saw steady growth in its enterprise solutions and services sector, as well as in its networking and storage divisions. The consumer sector, though, continues to suffer as the company continues its transition to an enterprise-focused model.

Dell saw total revenue of $14.5 billion, with its Enterprise Solutions and Services revenue growing six percent year-over-year to $4.9 billion, or a bit more than a third of its total. Server and networking revenue also increased 14 percent, and Dell-owned storage revenue was up six percent. The company's Dell Services division saw $2.1 billion in revenue, up three percent, with $1.8 billion in new signings over the last 12 months.

The consumer sector only managed $2.6 billion for the quarter, though. That represents a 22 percent decline year-over-year. The segment had an operating income of $14 million for the quarter, or 0.5 percent of revenue.

Looking forward, the company expects its Enterprise Solutions, Services, and Software divisions to continue to grow. Economic uncertainties, though, tamped down expectations for consumer business. Dell also cites "a challenging end-user computer environment" as a difficulty for its consumer segment going forward, likely an allusion to the tough position PC manufacturers find themselves in as consumers increasingly choose smartphones and tablets over traditional computing form factors.

by MacNN Staff



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