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Dell beats revenue estimates as remote work fuels demand

Dell beats revenue estimates as remote work fuels demand

FILE PHOTO: A logo of Dell Technologies is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018. REUTERS/Yves Herman/File Photo

NEW YORK: Dell Technologies beat market estimates for second-quarter revenue on Thursday as the shift to hybrid work kept demand strong for its laptops, desktops and cloud services.

People globally continue to spend on computer devices even after a year of working from home. Figures from International Data Corp showed shipments of PCs rose 13 per cent from April to June, but the pace of growth was much slower than last year's frenzy.

While the industry has faced pressure from components shortage and supply chain woes, revenue at Dell's client solutions unit - home to its hardware devices - surged 27 per cent to a record US$14.3 billion.

Its cloud-computing unit, VMware, grew 8 per cent, thanks to orders from companies looking to cut costs and expand their digital presence.

Total revenue jumped 15 per cent to US$26.12 billion, beating the analysts' average estimate of US$25.53 billion, according to Refinitiv data.

The reopening of the economy has redirected some consumer spending away from computers to other sectors. But a recent rise in COVID-19 cases has prompted renewed curbs and could potentially boost the demand for remote-working equipment.

Dell's net income fell to US$880 million, or US$1.05 per share, in the quarter ended Jul 30, from US$1.01 billion, or US$1.37 per share, a year earlier.

Source: Reuters

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