Dell revenue rises 3per cent as Windows refresh spurs PC demand

Dell revenue rises 3per cent as Windows refresh spurs PC demand

Dell Technologies Inc reported a 3per cent rise in first-quarter revenue on Thursday, as more customers upgraded their systems ahead of Microsoft's planned phase out of Windows 7 and strong performance in its VMware Inc unit.

The logo for Dell Technologies Inc. is displayed on a screen on the floor of the New York Stock Exc
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 Technologies Inc reported a 3per cent rise in first-quarter revenue on Thursday, as more customers upgraded their systems ahead of Microsoft's planned phase out of Windows 7 and strong performance in its VMware Inc unit.

The company also swung to a profit, reporting net income attributable of US$293 million, compared with a loss of US$636 million a year earlier.

Dell, one of the top players in the PC market, returned to public markets on Dec. 28 after it bought back interest tied to the performance of software maker VMware, and shares have surged nearly 50per cent since then.

Client Solutions Group, which consists of Dell's desktop PCs, notebooks and tablets, as well as its branded peripherals business, reported a 6per cent rise in revenue to US$10.91 billion.

Analysts had expected the segment to report revenue of US$10.58 billion, according to FactSet.

Revenue from commercial customers rose 13per cent and contributed US$8.31 billion to the Client Solutions Group, boosted by Microsoft Corp's decision to end support for its Windows 7 operating system early 2020.

Separately, Dell's unit VMware reported a 13per cent jump in revenue to US$2.28 billion.

Dell's total net revenue rose 2.6per cent to US$21.91 billion in the three months ended May 3. On an adjusted basis, Dell reported revenue of US$21.99 billion.

Analysts on average expected the company to report revenue of US$22.24 billion, according to IBES data from Refinitiv.

On a per share basis, the company earned 38 cents in the quarter. Excluding certain items, earnings were US$1.45 per share.

Dell did not report earnings per share for fiscal 2019 due to certain transactions.

Revenue in its Infrastructure Solutions Group fell 5per cent to US$8.20 billion, largely due to a 9per cent drop in the server and networking side of the business.

(Reporting by Shariq Khan in Bengaluru; Editing by Sriraj Kalluvila)

Source: Reuters

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