Dell's Revenue Rises $62.1 bn

Dell's further expansion as an enterprise solutions and services provider highlighted the company's most successful financial year ever.

New corporate highs were achieved for a full fiscal year with revenue of $62.1 billion, earnings per share of $1.88 (GAAP - Generally Accepted Accounting Principles) and $2.13 (Non-GAAP), and revenue from enterprise solutions and services of $18.6 billion.

"Our customers think of Dell in much broader terms now, trusting us with their comprehensive IT needs, from the datacenter to the device," said Michael Dell, chairman and CEO. "We are more committed than ever to both developing and investing in innovative solutions that deliver greater value and better outcomes for our customers."

 "The expanding mix of revenue and earnings from enterprise solutions and services is critical to our future," said Brian Gladden, Dell chief financial officer. "Our full-year results are a strong reflection of the significant progress we made this year on our strategic priorities."

Results

• Revenue in the quarter was $16 billion, a 2 per cent increase over the previous year. Dell had an extra week in its fiscal year 2012 that was incorporated into the company's Q4. Revenue for the 2012 fiscal year was $62.1 billion, a 1 per cent increase.


• GAAP earnings per sharein the quarter was 43 cents, down 10 per cent from the previous year; non-GAAP EPS was 51 cents, down 4 per cent. For the fiscal year, GAAP EPS was $1.88, up 39 per cent year over year and Non-GAAP EPS was $2.13, up 34 per cent, both records.


• GAAP operating income for the quarter was $931 million, or 5.8 per cent of revenue. Non-GAAP operating income was $1.1 billion, or 7.1 per cent of revenue. For the fiscal year, GAAP operating income was $4.4 billion and non-GAAP operating income was $5.1 billion, both records.


• Cash flow from operationsin the quarter was $1.8 billion, and Dell ended Q4 with $18.2 billion in cash and investments.For the fiscal year, Dell spent $2.7 billion to purchase 178 million shares of Dell stock.
  
  

Strategic Highlights:

• Dell Services revenue grew 12 per cent to $2.2 billion and represented 14 per cent of Dell's business. The transactional services business increased 14 per cent with strong attach rates of Dell premium support services and the outsourcing business grew 8 per cent. Services backlog increased11 per cent to $15.5 billion.


• Dell-owned storage grew 33 per cent to $463 million, led by offerings based on Dell-owned intellectual property, including Compellent, which had sequential growth of more than 60 per cent.


• Server and networking revenue grew 6 per cent.

Business Units and Regions:

• Large Enterprise had revenue of $4.9 billion in the quarter, a 5 per cent increase with broad-based growth across both client and enterprise solutions and services. Services revenue increased 18 per cent. Operating income for the quarter was $461 million, or 9.4 per cent of revenue. Revenue for the full year was $18.5 billion, up 4 per cent from the previous year.


• Publicrevenue was $3.9 billion, a 1 per cent decrease. The segment was affected by continued weakness in U.S. Federal and Western Europe. Services revenue increased 7 per cent and DellIP storage revenue was up 32 per cent. Operating income for the quarter was $327 million, or 8.3 per cent of revenue.


• Small and Medium Business revenue grew 6 per cent to $4 billion. Enterprise solutions and services revenue was up 18 per cent during the quarter to an all-time high of $1.2 billion. Services growth was 28 per cent in the quarter. SMB delivered $412 million in operating income, or 10.3 per cent of revenue, driven by the better mix of higher-margin enterprise solutions and services.


• Consumer revenue was $3.2 billion, a 2 per cent decline for the quarter. Operating income was $39 million or 1.2 per cent of revenue, a 43 per cent decline. Revenue weakness was largely concentrated in the United States, while revenue from non-U.S. countries grew 10 per cent.


• Asia-Pacific and Japan revenue grew 10 per cent - including 15 per cent growth from China - and EMEA increased 8 per cent in the quarter. Americas was down 3 per cent. Revenue in Growth Countries - defined as those outside the U.S., Canada, Western Europe and Japan - increased 8 per cent in the quarter and 12 per cent for the fiscal year. Revenue in the BRIC countries increased 10 per cent in the quarter and 15 per cent for the fiscal year.