Denali Holding, the parent company of Dell, reported a first quarter operating loss of $161 million on revenue of $12.5 billion, down 2 percent from a year ago.
The company, which this week priced $3.25 billion in junk bonds, has been lining up funding to close its purchase of storage giant EMC. Dell's parent is privately held, but discloses results for bondholders.
Dell's PC and enterprise units saw sales fall in the first quarter, but the software division's revenue was flat. Earnings from discontinued operations such as the Dell Services division sold to NTT Data resulted in first quarter net income of $55 million. The results fell short of what Dell projected for the first quarter May 13.
By unit, Dell's enterprise unit delivered first quarter sales of $3.6 billion, down 2 percent from a year ago, with operating income of $192 million. Dell said it is investing in its sales team. The PC unit saw revenue fall 3 percent to a year ago to $8.6 billion with operating income of $385 million. Dell's software group had flat revenue of $334 million with operating income of $28 million in the first quarter.
Dell is also spending about 2.7 percent of revenue on research and development.