Dell misses on Q2 revenue, net profit up to 60 percent but cuts Q3 Outlook

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Dell reported mixed earnings this afternoon for the second quarter of fiscal year 2012. Income in the quarter amounted to 15.7 billion, up to 1 per cent last year. GAAP net income per share was $ 0.48, up to 71%; non-GAAP EPS was $ 0.54 cents to 69 per cent. The company blew past EPS expectations, Dell missed several on revenue. Analysts expected a non-GAAP EPS of $ 0.49 in revenue of $ 15.75 billion.

Cash flow from operations rose to a record 2.4 billion of non-GAAP net income came in at $ 1 billion for the quarter, up to 60 percent from the same quarter last year. Dell ended the quarter with record-high $ 16.2 billion in cash and investments and repurchased $ 1.1 billion in stock in the quarter.

Dell said growth in its enterprise solutions and services, particularly in the serverm storage, data management, security services and the cloud continues to manage the company's profitability in the fiscal second quarter as operating income increased significantly to increase the income of 1 per cent.

Income for Dell commercial activities amounted to $ 12.8 billion, 1 percent from a year ago. Solutions & services profits rose 4 percent to $ 4.6 billion in the quarter and now represents 35% of Dell's commercial revenue. Servers and network revenues increased 9 percent year-over-year. Dell services revenue grew by 6 per cent to $ 2 billion.

Growth outside the United States and Canada, Western Europe and Japan increased 14 per cent of the income of the previous year and now account for 28 per cent of the total income of Dell. In particular India and China amounted to 21 per cent and 20 per cent, respectively.

Michael Dell, Chairman and Chief Executive Officer, said in a release: "we continue to see big boost in areas of high growth of our business, which is a direct reflection of the discipline and strong execution, our global Dell team to help solve real problems for our clients. We create efficiency through every step of the value chain and it will eventually include all customers from home users to large enterprises and government organizations to achieve results that are most important to them. "

In the third quarter, Dell expects revenue of approximately flat for Q2.

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