As businesses assessed the damage and began digging out, the picture wasn't as gloomy as they might have feared - WSJ, on the tsunami that killed thousands
TIN BOX FLOGGER Dell has seen its third quarter of fiscal 2013 profits fall by 47 percent to $475m.
Dell's difficult year continued as the company announced another set of financial results that failed to meet last year's numbers. The firm reported revenue of $13.7bn, a 11 percent drop from last year, while profits fell by a deeply worrying 47 percent to $475m.
Dell focused on the positives claiming that its Enterprise Solutions and Services and Server and Networking divisions saw sales grow by three and 11 percent, respectively, but it couldn't hide the fact that its business units generally saw steep declines in sales. The firm said that revenue from consumer sales fell by 23 percent to $2.5bn while business from large enterprises and the public sector fell by eight and 11 percent, respectively.
Not surprisingly, Dell CEO Michael Dell didn't refer to any of this and instead talked up the firm's purchases of Wyse and Sonicwall. Dell CFO Brain Gladden said, "In a difficult global IT spending environment we saw solid proof points that demonstrate progress in our strategy. 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 said that it doesn't expect the market to pick up in the fourth quarter, meaning it is highly likely that full year financial results will be down from its fiscal year 2012 performance. The company's profits are already 32 percent down from last year but Dell claimed it is on course to provide at least $1.70 in earnings per share. µ
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