Dell: Enterprise revenue up, consumer revenue falls
In its fiscal first quarter 2012 earnings, revenue ticked up 1 percent to $15 billion. Consumer PC revenue was down 7 percent, though large enterprise and small business revenue saw increases.
Dell beat expectations on its earnings per share for its fiscal first quarter 2012 earnings, but its revenues did not.
Dell today reported revenue of $15 billion for the most recent quarter, up 1 percent from a year ago, but below the average of $15.4 billion Wall Street was looking for. Its earnings per share of 49 cents just beat the 48 cents that was anticipated. It's also a 188 percent increase over the 17 cents per share reported a year ago.
Dell's consumer PC business had a rough quarter. Revenue for the unit that makes laptops, desktops, and smartphones decreased 7 percent from a year ago to $3 billion. The reason? Demand for consumer PCs was "softer than expected." Note that that's the exact language Hewlett-Packard used this morning in its earnings report when explaining a .
Meanwhile, its enterprise businesses are growing and now account for 20 percent of the $15 billion in revenue.
Enterprise solutions and services revenue increased 5 percent, and storage and networking increased 11 percent. Corporate refreshes of PCs for employees helped push revenue from large enterprise PC sales up 7 percent. Small and medium business revenue also saw an increase of 7 percent.
"We're off to a solid start in our fiscal year 2012. Our substantial profit increase demonstrates that our strategy is working and our execution is improving," said Chairman and CEO Michael Dell in a statement.
Looking ahead, Dell expects better-than-usual revenue next quarter, somewhere in the "mid-single digits." Specifically it says its local government and education customers will be spending more, and its small business, medium business, and consumer customers should see a boost from new Sandy Bridge-based PCs, and new laptop products arriving in the next few months.