Dell quarterly profit jumps on higher server demand, lower costs

Dell quarterly profit jumps on higher server demand, lower costs

Benefits from improved supply chain.

By on

Dell Technologies Inc posted a 68 percent rise in quarterly operating profit on Monday, as strong demand for servers and network equipment cushioned weak PC sales and easing supply-chain pressures helped rein in costs.

Revenue in the company's infrastructure solutions group, which includes servers, storage devices and networking hardware, rose 12 percent in the third quarter.

Meanwhile, the widely recorded cooling demand for personal computers and laptops from pandemic highs weighed on the company.

Consumer revenue tumbled 29 percent and large enterprises, or commercial, revenue, fell 13 percent. Total revenue slipped 6 percent to US$24.72 billion (S$34 billion)  but beat expectations of US$24.54 billion, according to Refinitiv IBES data.

The company benefited from an improving supply chain that eased pressure from higher component and freight costs, as well as measures to reduce expenses such as a freeze on external hiring.

Operating expenses fell eight percent in the third quarter that ended October 28, the company said.

Net income tumbled 93 percent to US$241 million, due to the US$1 billion settlement of a lawsuit over a disputed 2018 stock swap.

Operating income rose to US$1.76 billion, from US$1.05 billion a year earlier.

Excluding items, Dell earned US$2.30 per share.

To reach the editorial team on your feedback, story ideas and pitches, contact them here.

Most Read Articles