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August 30, 2009

Dell Q2 revenue declines 22%

Revenue from the BRIC countries grew 16% sequentially; expects better H2

By CBR Staff Writer

Dell has reported revenues of $12.8 billion in the second quarter of 2010, a decline of 22% compared to $16.4 billion in the year-ago quarter. For the quarter, operating income was $671m, a decrease of 18% compared to $819m in the same quarter of the previous year. However, the company reported an improvement in its revenue and earnings on sequential basis.

The company said that the Large Enterprise segment’s revenue totalled $3.3 billion in the second quarter of 2010, a 32% decrease from the same quarter of the prior year. Operating income in the segment was $172m.

For the quarter, Public segment revenue was $3.8 billion, up 20% sequentially and down 16% from year ago quarter. Operating income was $383m, a 16% year-over-year increase.

Small and Medium Business revenue was $2.8 billion, a 5% decrease sequentially and a 29% decrease from the same quarter of fiscal 2009. Operating income of the segment was $246m. Consumer segment reported revenue of $2.9 billion, up 2% sequentially and a 9% decline from the same quarter of the prior year. The segment reported $89m operating income.

Dell reported that its revenue from the BRIC (Brazil, Russia, India and China) countries grew 16% sequentially. Sales in BRIC now comprise 10% of total company’s revenue.

The company reported a net income of $472m in the second quarter of 2010, a decrease of 23% compared to $616m in the same quarter of the previous year.

Michael Dell, chairman and chief executive officer: “We have been reducing complexity in our organisation and significantly lowering operating costs, in anticipation of improvement in the global economy and IT spending.

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“If current demand trends continue, we expect revenue for the second half of the year to be stronger than the first half. We are expanding our capabilities in enterprise technology and services and investing in our core business to distinguish Dell both with customers and in operating performance.”

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