Dell sales hit US$91 billion as storage, server market share grows

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Dell sales hit US$91 billion as storage, server market share grows

For the first time reporting as a publicly traded company, Dell Technologies sales jumped to nearly US$24 billion for its fiscal fourth quarter with high expectations for the new fiscal year ahead thanks to a continued focus on integration and collaboration across its family of businesses.

For Dell’s full fiscal year 2019, which ended 1 February, revenue reached US$90.6 billion, up 15 percent year over year. The infrastructure giant is projecting total fiscal year 2020 revenues to reach upwards of US$95.7 billion, according to its financial guidance.

“We expect and have built a plan to take share in both the mainstream server and the storage marketplaces we serve today in [fiscal year 2020]” said Jeff Clarke, vice chairman, products & operations for Dell Technologies during Thursday’s fourth quarter earnings call with media and analysts.

“We continue to increase integration and cross sales between sales teams, most notably between Dell, EMC and VMware. You’ve heard [VMware CEO] Pat Gelsinger talk about the revenue synergy they are realising as part of the Dell Technologies family. There’s a lot more to come.”

Looking at Dell’s entire fiscal year 2019, storage revenues hit US$16.7 billion, up 9 percent compared to 2018, while servers and networking sales climbed 28 percent to US$20 billion in the same time period. For Dell’s Client Solutions Group, which include PCs, notebooks and workstations, sales for the full year reached US$43.2 billion, up 10 percent compared to 2018.

Clarke and other executives on the call were bullish about Dell’s future over the next 12 months, citing the repatriation of workloads moving from public cloud to on-premise as well as the US$120 billion that will be spent on hardware for on-premise private clouds over the next several years and an additional US$100 billion in software and services on top, according to research firm IDC.

“In fiscal year 2020, we’ll continue to focus on storage and data protection growth, server margins and improving operating leverage from our investment in sales coverage, and increase sales and solutions development and collaboration across the Dell Technologies family,” said Clarke.

Dell Technologies founder and CEO Michael Dell did not participate in his company’s earnings call.

For its fourth fiscal quarter 2019, which ended 1 February, Dell Technologies revenues were US$23.8 billion, up 9 percent year over year. The company generated operating income of US$331 million compared to an operating loss of US$69 million during the same quarter one year ago. Dell reported a net loss of US$287 million for its fourth quarter.

Dell’s overall Infrastructure Solution Group (ISG), which includes servers, networking and storage jumped 10 percent year over year to US$9.9 billion in the fourth quarter.

The company’s storage momentum continued in the fourth quarter by generating US$4.6 billion in sales, up 7 percent year over year. Dell’s servers and networking revenue totaled US$5.3 billion, an increase of 14 percent year over year.

“We delivered profitable share gains across the entire portfolio. We have stabilised ISG and have strengthen the collaboration among our family of businesses, including VMware, Pivotal, Boomi and SecureWorks,” said Clarke. “We’ve expanded our enterprise and commercial buyer-base by more than 100,000 with the investments we have made in our go-to-market engine.”

Dell Technologies is also the majority owner of VMware, who also reported four quarter earnings on Thursday. The virtualisation leader reported revenue of US$2.6 billion, up 17 percent year over year. VMware’s generated a total of US$9.1 billion in sales for its entire fiscal year 2019, representing a 14 percent increase compared to 2018.

Fourth-quarter revenue for other Dell Technologies businesses -- including Pivotal, SecureWorks, RSA, Virtustream and Boomi -- reached US$593 million, up 5 percent year over year.

Dell Technologies stock remained essentially flat in after-hours trading at US$55.45 following the earnings call.

This article originally appeared at crn.com

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