Dell Inc. Reports Operating Results (10-Q)

Author's Avatar
Dec 03, 2012
Dell Inc. (DELL, Financial) filed Quarterly Report for the period ended 2012-11-02.

Dell Inc has a market cap of $16.72 billion; its shares were traded at around $10.075 with a P/E ratio of 5.3 and P/S ratio of 0.3. The dividend yield of Dell Inc stocks is 3.3%. Dell Inc had an annual average earning growth of 8.1% over the past 10 years. GuruFocus rated Dell Inc the business predictability rank of 3.5-star.

Highlight of Business Operations:

approximately 18% of our total net revenue. We continued to experience competition from alternative mobile computing devices, including tablets and smart phones, during the third quarter of Fiscal 2013. Overall, revenue from our enterprise solutions and services increased 3%, while revenue from our client products decreased 19%. During the third quarter of Fiscal 2013, revenue from enterprise solutions and services represented 35% of total net revenue, compared to 31% of total net revenue in the third quarter of Fiscal 2012, and gross margin from this area grew to more than 50% of total gross margin during Fiscal 2013. Our Fiscal 2013 software acquisitions, which primarily consist of SonicWALL and Quest Software, are included in the results reported for enterprise solutions and services.

Large Enterprise — During the third quarter of Fiscal 2013, Large Enterprise experienced an 8% decrease in net revenue. Servers and networking revenue and revenue from services increased 14% and 1%, respectively, while storage revenue declined 24%. Revenue from software and peripherals, mobility products, and desktop PC revenue decreased 16%, 24%, and 14%, respectively. Large Enterprise revenue decreased across all regions in the third quarter of Fiscal 2013, led by a decline in revenue from Europe, the Middle East, and Africa ("EMEA").

Public — During the third quarter of Fiscal 2013, Public experienced an 11% decrease in net revenue, which was attributable to continued budget constraints on public spending. During the third quarter of Fiscal 2013, revenue from all product lines decreased, except for revenue from servers and networking, which increased 1%. Storage revenue and revenue from services decreased 19% and 8%, respectively, while revenue from software and peripherals, mobility products, and desktop PC revenue decreased 9%, 21%, and 11%, respectively. Public revenue decreased across all regions in the third quarter and first nine months of Fiscal 2013, led by a decline in revenue from the U.S.

During the first nine months of Fiscal 2013, Public net revenue decreased 7%. Revenue from all product lines decreased during the first nine months of Fiscal 2013, except for revenue from servers and networking, which increased 2%. Storage revenue and revenue from services decreased 14% and 4%, respectively, while revenue from software and peripherals, mobility products, and desktop PC revenue decreased 9%, 13%, and 7%, respectively.

Mobility — Revenue from mobility products (which include notebooks, mobile workstations, and tablets) decreased 26% and 18% during the third quarter and first nine months of Fiscal 2013, respectively. These declines were driven by a 22% and 16% decrease in mobility unit sales for the third quarter and first nine months of Fiscal 2013, respectively. In addition, average selling prices decreased 4% and 2% during the third quarter and first nine months of Fiscal 2013, respectively. Commercial mobility revenue decreased 22% and 13% during the third quarter and first nine months of Fiscal 2013, respectively, while Consumer mobility revenue decreased 30% and 24% over the same periods, respectively. During the third quarter and first nine months of Fiscal 2013, we experienced a difficult macro-economic and pricing environment in our client business. In addition, our results were impacted as customers shifted some of their demand to alternative computing devices, particularly in our Consumer segment.

Read the The complete Report