Dell reports first quarter financial results

TEXAS, USA: Dell announced its fiscal 2013 first quarter results, continuing to show progress in its move to being a total enterprise services and solutions provider. Revenue for the quarter was $14.4 billion, with GAAP operating income of $824 million, and earnings of $0.36 per share, said a press release.

''We're committed to continuing our strategy to re-shape Dell's business as an end-to-end IT provider,'' said Michael Dell, chairman and CEO. ''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.''

''We continued to shift the mix of our business during a challenging environment,'' said Brian Gladden, Dell chief financial officer. “Our enterprise solutions and services businesses now account for 50 per cent of our gross margin, and we’ll continue to make the necessary investments to maintain our progress.''

Result Highlights:

• Revenue in the quarter was $14.4 billion, a 4 per cent decrease from the previous year.
• GAAP earnings per share in the quarter was 36 cents, down 27 per cent from the previous year; non-GAAP EPS was 43 cents, down 22 per cent.
• GAAP operating income for the quarter was $824 million, or 5.7 per cent of revenue. Non-GAAP operating income was $1 billion, or 7 per cent of revenue.
• Cash used in operations in the quarter was $138 million. For the past four quarters, Dell has generated $4.9 billion in cash flow. Dell ended the quarter with $17.2 billion in cash and investments.

The company expects second quarter revenue to be in line with historical seasonal trends and be up 2-4 per cent from first-quarter levels.