Dell reports drop in Q3 earnings

Dell has reported a net income of $727 million for its third-quarter, down from the $766 million it raked in for the same period last year.

A recent $400 million stock buyback plan saw Dell's share price reach 37 cents, compared to 34 cents a year ago. This led the company to report an increase of 9% in its net income for the quarter.

The company’s operating income also improved by 22% to reach $1 billion, reflecting the success of its recent cost-reduction initiatives.

“We took a measured approach in the third quarter to balancing growth and profitability. By the end of the second quarter, we had seen a slowdown in demand in most customer segments and concentrated our efforts where there was both profit and growth opportunity as we also improved our mix of products and services,” said Brian Gladden, Dell CFO.

“As a result, global commercial operating income increased to more than 8 percent of revenue as revenue declined 6 percent,” added Gladden.

Dell saw its highest revenue increase in emerging markets of Brazil, Russia, India, and China, where total revenues rose 20%, accounting for 9% of Dell's global revenue.

In Europe, Middle East and Africa however revenue was down by 5%.

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