Shares of Dell (Nasdaq: DELL) are trading lower after-hours Tuesday following the company's fourth-quarter 2012 results.

Service/Software revenue showed strong growth, leading to an overall revenue increase of 2 percent to $16.03 billion.

Net income fell 18 percent for Dell to $764 million, or 43 cents per share. After adjusting for certain one-time items, EPS was a more robust 51 cents.

The Street was expecting revs of $15.96 billion and EPS of 52 cents per share.

Gross margin held firm at 21.1 percent, up 10 basis points from the same quarter last year.

Desktop PC revs grew 3 percent to $3.70 billion while Server revs popped 6 percent to $2.22 billion. The overall growth leader was Services, with a 12 percent jump. Storage was shaky, falling 13 percent to $2.18 billion.

Looking to the first quarter of 2013, the company expects revenue to decline approximately 7 percent sequentially, which aligns with normal seasonality adjusted for the fourteenth week.

Dell sees FY13 EPS atop $2.13, the same EPS it delivered in 2012. The Street was expecting $2.04.

Shares are about 4.6 percent lower in the late session.

Earnings Insiders' Blog