• Enterprise solutions and services revenue up 4 percent to $4.6 billion
• Operating income for the first half of FY12 up more than 50 percent
• Earnings per share of 48 cents (GAAP) and 54 cents (non-GAAP) up 71 and 69 percent, respectively
• Cash flow from operations in the quarter a record $2.4 billion, more than $5.2 billion for last four quarters

ROUND ROCK, Texas — (BUSINESS WIRE) — August 16, 2011 — Dell’s investment in differentiated enterprise solutions and services continued to drive substantial gains in the company’s profitability in the fiscal second quarter as operating income rose significantly on a 1 percent revenue increase.

Dell’s mid-market design focus on next-generation computing solutions and intelligent data management; services, security and cloud; and end-user computing is driving the shift in the company’s mix to a higher-value portfolio and resulting in sustainable, improved results. The company’s GAAP operating income of 7.7 percent of revenue year to date and 7.3 percent of revenue over the past four quarters is in line with its long-term value creation framework goal of more than 7 percent.

Growth in enterprise businesses highlighted the quarter. Solid demand for Dell’s server, storage and services portfolio reflects increasing customer preference for the company’s highly capable, affordable and flexible solutions and services. Dell continues to make prudent investments to develop and acquire industry-leading systems management, storage, security and networking intellectual property. Dell is also increasing investment levels in sales and go-to-market capabilities. These investments contributed to the solid operating income and strong cash-flow generation in the quarter and first half.

Results:

• Revenue in the quarter was $15.7 billion, up 1 percent over last year and 4 percent sequentially.
• GAAP earnings per share was 48 cents, up 71 percent; non-GAAP EPS was 54 cents, up 69 percent. Vendor settlements resulted in approximately $70 million in benefit in the quarter that increased non-GAAP gross margins 50 basis points and non-GAAP earnings per share by 4 cents.
• GAAP operating income was $1.1 billion, or 7.3 percent of revenue. Non-GAAP operating income was $1.3 billion, or 8.5 percent of revenue.
• Cash flow from operations was $2.4 billion for the quarter and $5.2 billion over the last four quarters. Dell ended the quarter with a record high $16.2 billion in cash and investments and repurchased $1.1 billion in stock in the quarter.

Fiscal-Year 2012 Second Quarter and Half Year Highlights