Dell reported fiscal 2014 second quarter results, with revenue of $14.5 billion, flat from the previous year, and earnings of 12 cents per share. The company’s Enterprise Solutions, Services and Software (ES&S) revenue was $5.8 billion, growing 9 percent year over year. In End User Computing, revenue was down 5 percent year over year.
Operating income for the quarter was $272 million, or 1.9 percent of revenue. Earnings per share was 12 cents, down 71 percent from the previous year.
Cash flow from operations in the quarter was $1.7 billion. Dell ended the quarter with $13.9 billion in cash and investments.
Dell – Operating Segments
Enterprise Solutions Group revenue was $3.3 billion, an 8 percent increase. Operating income for the quarter was $137 million, a 9 percent decrease. Dell server, networking and peripherals revenue increased 10 percent, the fifth consecutive quarter of growth for this business, driven by continued strength in hyper-scale data center servers. Dell networking continued to grow, with a 19 percent revenue increase. Dell storage revenue declined 7 percent.
Dell Services revenue was $2.1 billion, up 2 percent, driven by a 3 percent increase in support and deployment revenue and a 5 percent increase for infrastructure, cloud and security services revenue. Applications and business process services revenue declined 6 percent. Total Services operating income was $339 million, a 1 percent increase.
Dell Software revenue was $310 million, and recorded an operating loss.
End User Computing revenue was $9.1 billion in the quarter, a 5 percent decrease. Operating income for the quarter was $205 million, a 71 percent decrease. Dell desktop and thin client revenue increased 1 percent, mobility revenue declined 10 percent, and revenue from software from third parties and peripherals declined 5 percent.
Dell is not providing a guidance as it treads the choppy waters of taking the company private.
[Image courtesy: Dell]