Dell: Fiscal 2Q10 Financial Results

For storage only

(in US$ millions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	690	551	1,334	1,085
*Growth*		-20%		*-19%*

Dell, Inc. reported its financial results for its fiscal second-quarter 2010 ending in July 31, 2009.

Combined revenue from servers and storage was up 7% sequentially. Revenue of $12.8 billion was 22% lower than the year-ago quarter.

Storage continues to represent 4% of the revenue of the company but declined 20% from 2Q09 to 2Q10. Sales from EqualLogic storage systems only was up 42% year-over-year.

Comments

Abstracts of the earnings call transcript:

Question from Chris Whitmore, Deutsche Bank Securities:
"A follow up question on the storage business, EqualLogic continues to go quite nicely. That implies the EMC business is declining materially. Can you comment on the health of that relationship and the health of that product line?"

Answer by Michael Dell, chairman and CEO:
"Well look, you know the Dell EMC partnership is still an important part of our business and we continue to build and work that relationship. You know the EqualLogic platform is a big one for us. Certainly we’re attracted by having our own IP and the profit that that brings. But these products are somewhat different. You know when a customer is a fiber channel customer, we tend to focus them on the EMC platform. And you know obviously EqualLogic is a nice fuzzy platform today. We’re investing further to extend that into broader areas. But you know I think you can expect to see you know Dell EMC continue for quite some time. And you know we’re working with them on how we create the kind of products that we need, that fit with our enterprise offering, because they’ve got a solid position. We’ve built a great alliance together."