Saying it is holding or increasing market share in all its core markets, #DellTechnologies Inc. reported net revenue of $17.8 billion in its fiscal first quarter revenue, up 46 percent from a year ago. However, the growth rate was down from the 58 percent the company reported in the previous quarter, a fact that officials blamed in part on component shortages. The net loss of $1.38 billion compared with a profit of $55 million a year ago. But #Dell has said that year-over-year profit comparisons will be extremely difficult to make for some time because of costs associated with its acquisition of #EMC Corp. Backing out those and other onetime costs, operating income was $1.2 billion, up 122 percent over the same quarter last year. Dell’s gross margins grew an impressive 96 percent, a phenomenon the company attributed primarily to the impact of the EMC-acquired businesses. The company finished the quarter with cash and other current assets virtually unchanged from the previous quarter, despite having paid down its gross debt by another $100 million. In early trading on the New York Stock Exchange, investors bid shares of Dell’s tracking stock down about 2.5 percent. The Client Solutions Group, which comprises half of Dell’s overall business, outgrew the overall market in both commercial and consumer shipments, logging revenues of $9.1 billion, a 6 percent year-over-year increase. Dell branded string of consecutive year-over-year PC unit share growth to 17 quarters. During the quarter, Dell launched what is calls “PC as a Service,” a program that enables customers to buy and provision hardware on a predictable monthly expense basis and avoid large capital costs. It is the company’s first entry in a race by enterprise systems vendors to meet customer demands for on-premises equipment that they can buy on a cloud services model. The Infrastructure Solutions Group, which includes data center hardware, generated $6.9 billion of revenue in the first quarter, up 91 percent over a year ago. Of that, $3.2 billion came from servers and networking and $3.7 billion from storage. The company said it held on to its market share lead in x86 servers with a tiny 0.2 percent gain, with PowerEdge units and revenue growth up by double digits in the fiscal quarter. Sales of hyperconverged products more than doubled, and demand for all-flash arrays were up at a “very high double-digit rate.”
https://siliconangle.com/blog/2017/06/08/dell-blames-component-shortages-slowing-growth-rate/
No comments:
Post a Comment