Dell Q2 net dips 18 per cent to $732 million, revenues down 8 per cent at $14.48 billion
22 Aug 2012
Computer maker Dell has reported an 18 per cent year-on-year decline fall in its net profit for fiscal second quarter (May-July 2012) at $732 million, against a net profit of $890 million in the similar quarter of the previous year.
Revenues dropped 8 per cent to $14.48 billion in the second quarter of FY'13 from $15.65 billion in the year-ago period, Dell said in a release.
Dell Enterprise Solutions and Services said its revenue grew 6 per cent year-on-year to $4.9 billion and now represents more than 50 per cent of its margin and more than a third of revenue. This business is now approaching a $20 billion annual run rate.
Dell also saw its revenues in India dip 30 per cent during the quarter – led by a falling currency. It was also the sharpest fall in the Asia Pacific region.
"The revenues from all business segments in India declined double digit. Currency has moved 25 per cent in the one year, which clearly impacted us. However, India is a strong market for us and is also a hub for manufacturing, research and development and services for our global business as well," Dell President Amit Midha said on a conference call.
Operating income for the quarter was $901 million, or 6.2 per cent of revenue. Gross margins for the quarter gained approximately $70 million, or 50 basis points, from a vendor settlement, Dell said.
