Dell Applied sciences delivered a 19 p.c acquire in income in first quarter amid sturdy gross sales in servers, networking and industrial PCs. The corporate stated that it’s seeing higher market situations on account of “enhancing IT demand pushed by digital transformation.”
The corporate reported a first quarter net loss of $538 million on gross sales of $21.36 billion. Non-GAAP working revenue within the quarter was $2 billion. The corporate ended the quarter with $21.7 billion and paid down $600 million in core debt.
By unit, Dell’s infrastructure group delivered income of $eight.7 billion, up 25 p.c from a yr in the past. Servers and networking gross sales had been up 41 p.c and storage was up 10 p.c. Working revenue for the infrastructure group was $939 million.
Dell’s PC unit had income of $10.three billion within the quarter, up 14 p.c from a yr in the past. Industrial income was up 16 p.c with shopper gross sales up 7 p.c from a yr in the past. Working revenue for the PC unit within the first quarter was $533 million.
The corporate’s different companies resembling Pivotal and RSA additionally fared properly. VMware, which is rolled up into Dell Applied sciences outcomes, reported strong results.
On a convention name, Dell executives famous that the corporate has been in a position to cross-sell its merchandise properly. As well as, tax reform would not look like impacting the corporate’s charges or money place.