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Dell: Fiscal 2Q13 Financial Results

"Storage was not as strong as we'd like", commented CEO Michael Dell

By Jean-Jacques Maleval on 2012.08.23
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 in US$ million 2Q12 2Q13  6 mo. 12   6 mo. 13
 Storage Revenues 502 435
983  879
 Growth   -13%   -11%


Dell Inc. announced the financial results for its fiscal quarter ended August 3, 2012.

In storage, Dell continues to be a poor performer as it's getting to an end of EMC-related revenue, not compensated by Compellent's and EqualLogic's acquisitions. For its most recent three-month period, storage records revenue of $435 million, down 2% sequentially and 13% compared to one year ago. It's the lower figure since at least 3QFY09.

 
Dell Storage Revenue in $ Million

 Fiscal Quarter
Revenue
 Q/Q Growth
 3Q09  630    -9%
 4Q09  703   12%
 1Q10  534  -24%
 2Q10  551     3%
 3Q10  508    -8%
 4Q10  599    18%
 1Q11  554    -8%
 2Q11  624    11%
 3Q11  543   -13%
 4Q11  574      6%
 1Q12  500   -13%
 2Q12  502      0%
 3Q12  460     -8%
 4Q12  500      9%
 1Q13
 444   -11%
 2Q13  435     -2%

 

For CEO Michael Dell, "I think we can definitely do more there. What I'd also tell you is that the line that separates what the server and what the storage is not as clear as it might have been a few years ago. If you look at our 12th generation servers, you'll notice that they have enormous - huge capacities. And so you're seeing words of mouth. The storage show up inside the server itself. But 12G is certainly strong. Storage was not as strong as we'd like, and there's definitely room to grow that faster."

Brian Gladden, Dell's CFO, commented:" Dell IP storage was up 6% to $416 million in the quarter. While this is below where we would have liked it, we believe this is roughly in line with the market. We're confident in our portfolio and focused on accelerating growth and improving execution."

He added:" The businesses are in good shape. We've seen - overall, I think the pipelines look good. Competitors continue to be generally aggressive in parts of this business, but we would expect to see more growth there. And heading into the second half, the headwinds from that compares on EMC becomes a much smaller issue, and we really don't want to kind of talk about that anymore as we move forward."

For the first half of fiscal year 2013, storage revenue represents $879 million, a figure decreasing 11% Y/Y.

It continues to represent only 3% of the company's global sales.

To read the earnings call transcript

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