Dell posts surprise revenue rise on booming demand for remote-work tools


Consumers and businesses are spending on notebooks at a rate Dell has not seen in over a decade, according to an earnings presentation, helping its client solutions group rake in a record US$12.29 billion in revenue, up about 8% from a year earlier.

NEW YORK: Dell Technologies Inc reported a surprise rise in third-quarter revenue on Tuesday, driven by buoyant demand for its desktops and notebooks from remote workers and learners during the COVID-19 pandemic.

The PC maker's shares were last up marginally in volatile after-market trading, as adjusted earnings matched Wall Street expectation of US$2.03 per share.

Consumers and businesses are spending on notebooks at a rate Dell has not seen in over a decade, according to an earnings presentation, helping its client solutions group rake in a record US$12.29 billion in revenue, up about 8% from a year earlier.

Global shipments in the traditional PC market, which includes desktops, notebooks, and workstations, jumped 14.6% year-over-year to 81.3 million units in the third quarter of 2020, according to data from IDC.

While the health crisis lifted demand for Dell's remote workstation products, the company's data center business remained under pressure.

Revenue from its data center business fell about 4% to $8.02 billion in the quarter.

Sales at VMware Inc rose about 8% to $2.89 billion. Dell plans to spin off its 81% stake in the software unit to help reduce debt.

Total revenue rose nearly 3% to $23.48 billion in the three months ended Oct. 30, while analysts had estimated a drop of 4.4% to $21.85 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to $832 million, from $499 million a year earlier.

- Reuters
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3

Dell , remote-working , tools , revenue , profit ,

   

Did you find this article insightful?

Yes
No

100% readers found this article insightful

Next In Business News

Morgan Stanley CEO's annual pay rises by over 20%
‘Unstoppable’ luxury stocks remind some investors of US tech
Ambani’s Reliance doubles down on 5G pledge after record profit
PUNB offers payment deferment, rental discount
CPO futures may undergo technical correction next week
Blackstone-backed Patria eyes expansion in Latam, Asia
METALS: Tin, aluminium, copper prices down
Oil price falls on China's COVID-19 cases, high crude build
IBM, Intel slump weighs on Wall St as coronavirus concerns rise
GLOBAL MARKETS-Weak data, earnings drag stocks lower

Stories You'll Enjoy