New Delhi: Computer maker Dell on Friday reported 47 percent drop in net profit to USD 475 million for the August-October quarter of this fiscal, mainly on lower PC sales and weak demand from large enterprises.
The company had posted a net profit of USD 893 million in the corresponding period last year.
Dell follows February-January fiscal year, which ends on the last Friday of the month.
The company's revenues also dropped by 11 percent to USD 13.72 billion in the third quarter of FY13 from USD 15.36 billion in the year-ago period, Dell said in a statement.
Its revenues were down by 5.24 percent sequentially as the same stood at USD 14.48 billion in second quarter of FY13
Dell had guided third-quarter revenues to be down 2-5 percent from second-quarter levels on account of uncertain economic environment, competitive dynamics and soft Consumer business.
For the fourth quarter, Dell expects a sequential revenue growth of 2-5 percent.
"Dell sees the challenging global macro-economic environment continuing in the fourth quarter, which will continue to impact the company's results. The company expects sequential revenue growth of 2 to 5 percent," it said.
For the full year, Dell maintains its expectation for at least USD 1.70 in earnings per share on a non-GAAP (Generally Accepted Accounting Principles) basis, it added.
Once the world's top PC maker, Dell is now struggling to defend its market share against rivals like Acer and Lenovo and tablets like Apple's iPad.
Revenue in the US was down nine percent, while that from Europe, the Middle East and Africa was down 15 percent.
Revenues from the Asia-Pacific and Japan (APJ) region, which includes India, were down 11 percent year-on-year, Dell President, APJ, Amit Midha told reporters on a conference call.
He, however, did not comment on country-specific numbers.
Dell's revenues in Enterprise Solutions and Services business grew three percent year-on-year to USD 4.8 billion in the August-October 2012 quarter.
"We are consistently executing our end-to-end solutions strategy for the benefit of our customers. In the quarter, we completed the acquisition of Quest Software which -along with other recent acquisitions like SonicWALL and Wyse - adds leading management, security, virtualisation and cloud capabilities to our expanding portfolio of powerful solutions," Dell Chairman and CEO Michael Dell said.
The company's server and networking revenues grew 11 per cent. Revenues from Large Enterprise business was USD 4.2 billion in the quarter, a eight percent decline, while public revenues saw a 11 percent fall to USD 3.8 billion, the company statement said.
Small and medium business revenue was USD 3.3 billion, a one percent decline, while consumer revenue was USD 2.5 billion, a 23 percent decline, it said.
Cash flow from operations in the reported quarter was USD 1.3 billion and Dell ended the quarter with USD 14.2 billion in cash and investments, the company statement said.
"In a difficult global IT spending environment, we saw solid proof points that demonstrate progress in our strategy," Dell CFO Brian Gladden said.
Dell is also encouraged by early interest in its new Windows 8 touch portfolio and the opportunities it creates for the commercial and consumer businesses, he added.
First Published: Friday, November 16, 2012, 10:44