With the financial results out of the way, Dell said it has created a new dividend policy under which it will pay quarterly cash dividends on its common stock. Even so, Dell Chief Financial Officer Tom Sweet said the company had generated a nice return from spinning off VMware, adding $10.3 billion in cash flow and achieving an investment grade rating as a result of its debt reduction. This was the first quarter in which Dell no longer had any formal relationship with its former subsidiary VMware Inc., meaning no more revenue from it either. It’s not as big as the PC business, but it still generated a hefty $9.2 billion in sales, up 3% from a year ago. The increase was driven mainly by commercial PC sales, which jumped 30%, to $12.9 billion, with consumer PC sales up 16%, to $4.4 billion.ĭell’s other main business is its Infrastructure Solutions group, which accounts for the data center servers, systems, networking and storage gear it sells. It saw sales of $17.3 billion, up 26% from a year ago. Once again, the bulk of Dell’s revenue in the quarter came from its PC unit, the Client Solutions group. “We also made strategic progress across multicloud, edge, as-a-service and telecom and we launched solutions in these spaces, engaged customers, and made investments to position Dell for future growth,” he said. “For our customers, the biggest opportunity is to turn data into insight, action and progress, and they are prioritizing investments in technology.”Ĭhuck Whitten, Dell’s other co-COO, said the company benefited from widespread digital transformation that accelerated growth in tech spending throughout the year. “We reached more than $100 billion in revenue and grew 17% – a huge achievement and ahead of our long-term growth targets,” Clarke said. For its fiscal 2022 year, the company reported sales of $101.2 billion, up 17% from a year ago.ĭell Vice Chairman and Co-Chief Operating Officer Jeff Clarke (pictured) chose not to dwell on the loss, highlighting the fiscal 2022 performance, which he said was the best year in its history to date. On the other hand, Dell did at least generate record revenue for the year. The company blamed it on a higher-than-anticipated effective tax rate for the lower-than-expected earnings, plus increase operating costs that spiked to $1.65 billion, up from $475 million a year ago. Wall Street had been looking for earnings of $1.95 per share on sales of $27.5 billion.ĭell’s unexpected loss was a far cry from the $695 million profit it made in the same period a year ago. However, investors couldn’t stomach the net loss of $29 million, sending Dell’s stock down more than 11% in the after-hours session, following a sharp drop in regular trading too.įor the quarter, Dell reported adjusted earnings of $1.72 per share on revenue of $27.9 billion, up 16% from the same period one year ago. The company did beat expectations on revenue, at least, thanks to record-breaking personal computer shipments. saw its stock fall hard in extended trading today after missing forecasts on earnings and posting a surprise fourth-quarter loss. was founded in 1984 and is headquartered in Round Rock, Texas.Computer and data center infrastructure giant Dell Technologies Inc. and changed its name to Dell Technologies Inc. The company was formerly known as Denali Holding Inc. The company is also involved in the provision of cybersecurity technology-driven security solutions to prevent security breaches, detect malicious activity, respond rapidly when a security breach occurs, and identify emerging threats originating, collecting, and servicing customer financing arrangements and infrastructure-as-a-service solutions, as well as in the resale of VMware products and services. The CSG segment provides desktops, workstations, and notebooks displays, docking stations, and other electronics and third-party software and peripherals, as well as support and deployment, configuration, and extended warranty services. This segment also offers networking products and services that help its business customers to transform and modernize their infrastructure, mobilize and enrich end-user experiences, and accelerate business applications and processes attached software and peripherals and support and deployment, configuration, and extended warranty services. The ISG segment provides traditional and next-generation storage solutions, including all-flash arrays, scale-out file, object platforms, hyper-converged infrastructure, and software-defined storage and rack, blade, tower, and hyperscale servers. The company operates through two segments, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG). designs, develops, manufactures, markets, sells, and supports various comprehensive and integrated solutions, products, and services in the Americas, Europe, the Middle East, Asia, and internationally.
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