Dell storage sales hit US$4 billion

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Dell storage sales hit US$4 billion

Dell Technologies' storage charge is starting to pay off as the company reported this week a 10 percent increase in storage sales for its first financial quarter, while beating Wall Street's overall revenue estimates and recording a narrower net loss.

Dell reported storage sales of US$4.08 billion for its first fiscal quarter, which ended 4 May, representing a 10 percent increase year over year. The infrastructure giant said it expected to see first-quarter storage share gain since closing its blockbuster acquisition of EMC in 2016 for US$58 billion. Research firm IDC is expected to release first-quarter storage sales data this week. This is a complete turnaround from the company's previous fourth fiscal quarter where Dell reported a storage sales drop of 11 percent year-on-year.

"[We] expect to gain share in storage," Dell products and operations vice chairman Jeff Clarke said during the company's quarterly earnings call with media and analysts. "We're pleased, but not satisfied."

Clarke is leading Dell's biggest storage product roadmap initiative to realign its engineering teams to focus on a single product line for each market segment aimed to accelerate product innovation.

Although the privately-run Dell reported a narrower net loss than a year ago, the company beat analysts' sales forecasts of US$19.4 billion by generating a total of US$21.36 billion in the first quarter, up 19 percent year-on-year. Dell's tracking stock slightly fell less than 1 percent after Monday's earnings announcement to US$84.36 per share at press time.

Clarke recently CRN USA that he has spent the past few months breaking down the storage silos created when Dell acquired EMC.

He became the leader of Dell's Infrastructure Solutions Group (ISG) in September.

"At the core, what do I bring [to ISG]? I bring a disciplined R&D approach that has a track record of innovating and differentiating in the marketplace and winning, that's what I'm going to do," Clarke said in an interview with CRN USA.

The company reported a first-quarter net loss of US$636 million, or US$1.95 per share, which was 46 percent lower than Dell's loss of US$1.17 billion, or US$2.29 per share, the same quarter one year ago.

Dell ISG group, which includes servers, networking, data protection and storage sales, reached US$8.7 billion in the quarter, up 25 percent year over year. The company's networking and server revenues hit US$4.6 billion, up 41 percent compared to the same quarter one year ago. Dell reported triple-digit growth for VxRail and VxRack, which are the company's hyperconverged infrastructure solutions.

For Dell's Client Solutions Group, which includes PCs and workstation solutions, the company reported US$10.3 billion in sales, an increase of 14 percent year over year. PC shipments increased 6 percent, representing 21 consecutive quarters of year over year PC unit share growth.

During the quarter, Dell paid down approximately US$600 million of debt. The company's core debt balance currently stands at US$39.8 billion. Dell said it had paid down a total of US$13 billion in core debt since the closure of the EMC deal.

Other businesses within Dell Technologies, including RSA, Pivotal, Secureworks, Virtusteam and Boomi, generated a total of US$579 million, up 9 percent year over year.

This article originally appeared at crn.com

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