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Dell beats revenue estimates on buoyant demand for desktops, notebooks

Dell beats revenue estimates on buoyant demand for desktops, notebooks

FILE PHOTO: The logo for Dell Technologies Inc. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 10, 2019. REUTERS/Brendan McDermid

REUTERS: Dell beat Wall Street estimates for holiday-quarter revenue on Thursday (Feb 25), helped by demand for its desktops and notebooks as most offices continued to work remotely during the COVID-19 health crisis.

Revenue from its client solutions group, which includes desktop PCs, notebooks and tablets, was US$13.8 billion, up 17 per cent from a year earlier. The company said it had shipped a record 50.3 million units during 2020.

A global shift to remote work and learning early last year had spiked demand for remote workstation products that benefited computer hardware makers and cloud service providers alike.

Dell is in an advantaged position to capitalize on the projected mid-single digits growth in IT spending in 2021, Chief Operating Officer Jeff Clarke said.

Revenue from its data center business was US$8.8 billion in the quarter, in line with a year earlier, while sales at VMware Inc was US$3.3 billion. Dell plans to spin off its 81per cent stake in the software unit to help reduce debt.

Total revenue rose 9 per cent to US$26.1 billion in the three months ended Jan 29, while analysts had estimated US$24.5 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to US$1.2 billion from US$408 million a year earlier, as it shaved off administrative costs by 19 per cent in the quarter.

Source: Reuters

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