Published in PC Hardware

Dell doing well

by on29 May 2020

Even if it is taking the opportunity to freeze everything 

While tin box shifter Dell has frozen employee pay rises, retirement plan contributions and hiring across the business to "counter the financial impact of COVID-19" its results show that it is doing rather well out of the pandemic.

Dell Technologies beat analysts’ estimates for quarterly revenue on Thursday, boosted by demand for its workstations from companies moving more employees to work from home due to the coronavirus outbreak.

Revenue from client solutions group, that accounts for half of the revenue and includes desktop PCs, notebooks and tablets, rose two percent to $11.1 billion in its fiscal first quarter.

Commercial notebooks reported double-digit unit and revenue growth, while mobile workstations posted high-single-digit revenue growth, the company said.

“In Q1, we saw orders with banking and financial services, government, healthcare and life sciences customers up 15 percent to 20 percent”, Chief Operating Officer Jeff Clarke said in a statement.

But higher spending by companies towards enabling remote work, as well as weak demand in China weighed on Dell’s data center business.

Revenue in that business fell eight percent to $7.57 billion in the three months ended May 1.

Total revenue fell marginally to $21.90 billion, but topped estimates of $20.81 billion, according to IBES data from Refinitiv.

Net income attributable to the company fell to $143 million, from $293 million a year earlier.

Dell in March scrapped its financial year 2021 forecast due to uncertainty over the impact of the coronavirus outbreak.

Sales from its software unit VMware jumped 12 percent to $2.76 billion.


Last modified on 29 May 2020
Rate this item
(0 votes)

Read more about: