EmailDell (DELL $13.07 -1.98 ) reported first quarter of $0.43 per share, $0.03 worse than the Capital IQ Consensus of $0.46, while revenues fell 4.0% year/year to $14.42 billion versus the $14.91 bln consensus. The company issued downside guidance for the second quarter with revenue growth of 2-4% quarter over quarter (calculating to about $14.7-15.0 billion) vs. $15.47 bln Capital IQ Consensus Estimate. Dell Enterprise Solutions and Services revenue grew 2% y/y to $4.5 billion and contributed half of Dell's gross margin; The ESS revenue grew 5% excluding third-party storage. Dell Services revenue was $2.1 billion, up 4%. Services backlog increased 9% to $15.4 billion.
Dell-owned storage grew 24% to $423 million. Server and networking revenue grew 2%. Large Enterprise revenue was $4.4 billion in the quarter, a 3% decline. Operating income for the quarter was $402 million, or 9.1% of revenue. Public revenue was $3.5 billion, a 4?crease. Operating income for the quarter was $271 million, or 7.8% of revenue. Small and Medium Business revenue grew 4% to $3.5 billion. Enterprise Solutions and Services revenue increased 17%, led by services revenue growth of 23% and servers and networking of 16%. SMB had $389 million in operating income, or 11.2% of revenue. Consumer revenue was $3 billion, a 12% decline. Operating income was $32 million or 1.1 percent of revenue. Asia-Pacific and Japan revenue was flat but China increased 9 percent. EMEA revenue was down 1 percent in the quarter. Americas was down 7 percent. Revenue in the BRIC countries increased 4 percent.
