Infotech Lead Asia: Dell Chairman and CEO Michael Dell said it expects revenue to grow as much as 5 percent in the current quarter.
Dell CEO said its enterprise solution strategy continued to show positive results with server and networking revenue increasing 11 percent year over year.
In the third quarter, Dell completed the acquisition of Quest Software which – along with other recent acquisitions like SonicWALL and Wyse – adds leading management, security, virtualization and cloud capabilities to our expanding portfolio of powerful solutions.
“In a difficult global IT spending environment we saw solid proof points that demonstrate progress in our strategy,” said Brian Gladden, Dell CFO. “A highlight has been the strong progress of our newly introduced servers, with our server and networking business up 11 percent. We’re also encouraged by early interest in our new Windows 8 touch portfolio and the opportunities it creates for our commercial and consumer businesses.”
Dell’s Q3 revenue was $13.7 billion, down 11 percent as desktop and mobility revenue contracted.
|Third Quarter||Fiscal Year To Date|
|Operating Income (GAAP)||$||589||$||1,142||(48||percent)||$||2,314||$||3,500||(34||percent)|
|Net Income (GAAP)||$||475||$||893||(47||percent)||$||1,842||$||2,728||(32||percent)|
|Operating Income (non-GAAP)||$||886||$||1,288||(31||percent)||$||3,019||$||3,992||(24||percent)|
|Net Income (non-GAAP)||$||679||$||983||(31||percent)||$||2,315||$||3,039||(24||percent)|
Dell Enterprise Solutions and Services revenue grew 3 percent year over year to $4.8 billion.
The company year to date is 4 percent ahead of last year’s ES&S revenue at $14.2 billion, accounting for greater than 50 percent of the company’s gross margin thus far this year. The ES&S business is on an annual run-rate approaching $20 billion.
Server and networking revenue for the quarter grew 11 percent. Dell was the only top-3 server provider to have positive unit growth in the quarter.
Large Enterprise revenue was $4.2 billion in the quarter, an 8 percent decline. Operating income was $325 million, or 7.8 percent of revenue.
Public revenue was $3.8 billion, an 11 percent decrease. Operating income for the quarter was $352 million, or 9.2 percent of revenue.
Small and Medium Business revenue was $3.3 billion, a 1 percent decline. Operating income was $349 million, or 10.6 percent of revenue.
Consumer revenue was $2.5 billion, a 23 percent decline. Operating loss was $65 million or minus 2.7 percent of revenue.
Revenue in Americas was down 9 percent; Asia-Pacific and Japan was down 11 percent; and EMEA was down 15 percent.