Dell desktop, storage revenue drops in Q2

16.08.2011

"We continue to see great momentum in the high-growth areas of our business," said CEO Michael Dell in a statement.

Overall large enterprise revenue totaled $4.6 billion, growing 1 percent year over year. The company is increasing its focus on the midmarket -- companies with up to 5,000 employees -- and looking to acquire companies to grow its enterprise hardware and software portfolio, Dell said on a conference call.

The company also wants to focus on cloud and security services for the midmarket, Dell said.

The company experienced some hiccups in the storage supply chain, which affected revenue, said Brad Anderson, senior vice president of the Enterprise Solutions Group. Anderson did not describe the issue in detail but said it has been "rectified."

Dell is also preparing to release new EqualLogic software and hardware, which hurt demand for storage products in the second quarter, Anderson said. The new products will bring a "bit more balance in Q3," Anderson said.