Dell Q3 revenue dips 11% to $14b

IT solutions major Dell reported its quarterly results on Friday with decline in revenue across all business units and geographies. While the company’s Q3 revenue was down by 11 per cent year-on-year to $13.7 billion, net profit was down by 47 per cent to $475 million.

Dell attributed the decline in revenue to contraction of earnings from its desktop and mobility business lines coupled with the challenging global macroeconomic environment. It also expects the situation to continue in the fourth quarter, which would impact the company’s results.

“Our third quarter revenue was at $13.7 billion, which was at the lower end of our guidance. There is no question that the global economic environment is challenging, especially in the PC business. However, we would continue to be committed to our end-to-end solutions strategy for long-term benefits,” said Amit Midha, president of Asia-Pacific/Japan of Dell, during the company’s earnings call.

Over two years ago, the company repositioned itself as a full-spectrum IT player rather than just operating in the PC business. It entered the server and networking businesses and the enterprise services and solution offering now contributes over 50 per cent of Dell’s gross margin.

Michael Dell, chairman and CEO of Dell said, “We are consistently executing our end-to-end solutions strategy for the benefit of our customers. In the quarter, we completed the acquisition of Quest Software which — along with other recent acquisitions like SonicWALL and Wyse — adds leading management, security, virtualisation and cloud capabilities to our expanding portfolio of powerful solutions.”

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