EmailDell (DELL $11.62 -0.72) reported second quarter earnings of $0.50 per share, excluding non-recurring items, $0.05 better than the Capital IQ consensus of $0.45, while revenues fell 7.5% year/year to $14.48 billion versus the $14.66 billion consensus; desktop and mobility revenue contracted. Large Enterprise revenue was $4.5 billion in the quarter, a 3% decline. Operating income was $433 million, or 9.5% of revenue. Enterprise Solutions and Services revenue increased 9% on 17% growth in server and networking revenue and 5% increase in services. Public revenue was $4.1 billion, a 6% decrease. Operating income for the quarter was $379 million, or 9.3% of revenue. Server and networking revenue increased 4%. Small and Medium Business revenue was $3.3 billion, a 1% decline. Operating income was $382 million, or 11.7% of revenue.
Enterprise solutions and services grew 15% led by an increase of 27% in services revenue and 16% in servers and networking. Consumer revenue was $2.6 billion, a 22% decline. Operating income was $14 million or 0.5% of revenue. Revenue in Americas was down 6%; EMEA was down 7%, and Asia-Pacific and Japan revenue was down 12%. Revenue in BRIC countries was down 15%. The company issued downside guidance for the third quarter with revenues of -2 to -5% QoQ to approximately $13.76-14.19 billion versus the $14.87 billion consensus. The company issued downside guidance for fiscal year 2013 with EPS of at least $1.70, excluding non-recurring items, but including $0.02-0.03 dilution from Quest acquisition, versus the $1.91 consensus, guidance from February was for over $2.13.
