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NewsPoster Aug 15, 2013 08:39 PM
Dell posts massive hit to earnings per share, nearly no growth
<a href="http://macnn.com/rd/291962==http://www.dell.com" rel='nofollow'>Dell</a> today announced fiscal 2014 second quarter results, with essentially unchanged revenue year-over-year of $14.5 billion. Income plummeted to $204 million, making earnings per share $0.12, down a remarkable 71 percent since the same time period in 2013. The company's Enterprise Solutions, Services and Software (ES&S) revenue was $5.8 billion, growing nine percent year over year, including the benefit of the Quest acquisition. In End User Computing, revenue was down five percent year over year.<br />
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Enterprise Solutions Group revenue was $3.3 billion, an eight percent increase. Operating income for the quarter was $137 million, a nine 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 seven percent.<br />
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Dell Services revenue was $2.1 billion, up two percent, driven by a three 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 one percent increase. Dell Software revenue was $310 million, and recorded an operating loss. The company is continuing to enhance its software capabilities with investments in this business that increase R&D and sales capacity.<br />
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End User Computing revenue was $9.1 billion in the quarter, a five percent decrease despite increasing shipments overall worldwide. Operating income for the quarter was $205 million, a 71 percent decrease. Dell desktop and thin client revenue increased one percent, mobility revenue declined 10 percent, and revenue from software from third parties and peripherals declined five percent. <br />
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Dell refused to provide third quarter financial estimates, given the <a href="http://macnn.com/rd/291961==http://www.electronista.com/articles/13/07/11/new.offer.to.shareholders.allows.warrant.stock.pur chases.at.20/" rel='nofollow'>contentious privatization offer</a> on the table. "In a challenging environment, we remain committed to our strategy and our customers, and we're encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our Enterprise Solutions, Services and Software businesses," said Brian Gladden, Dell chief financial officer, of the results.
 
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