Dell’s quarterly profit more than quadruples on strong PC demand -Breaking
(Reuters) – Laptop manufacturer Dell Technologies (NYSE) Inc announced Tuesday that its profit jumped more than fourfold during the third quarter. This was due to increased demand for personal computers and servers as a result of hybrid work arrangements being adopted by many businesses.
Millions of people have taken to working from home after the COVID-19 epidemic disrupted in-person activities in many industries. This has led to a need for faster and better computers.
On an operating income $1.1 billion, Dell’s client services unit saw its revenue rise 35%.
Dell’s diverse revenue stream portfolio means that it has access to a variety of hardware and software products. It is also trying to get into emerging markets like edge computing, telecoms and cloud.
The quarter saw a 5% increase in revenue from the infrastructure solutions business (which includes data center businesses) to $8.4Billion.
According to data from Refinitiv, total revenue increased 21% to $28.39 Billion, which is almost double the average analyst estimate of $26.82 Billion.
In the quarter that ended on Oct. 29, net income increased to $3.89Billion or $4.87 per Share, up from $881M or $1.08 Per Share a year prior.
HP Inc (NYSE) meanwhile reported a quarter-end profit more than four times higher at $3.09 billion and stated that its personal systems division saw a 13% increase in revenues.
In the third quarter, Dell’s cloud computing unit VMware (NYSE) saw an increase of 10% in revenue.
VMWare was able to complete its Dell spinoff, where it owned 81%, and became a separate, publicly traded company in November 1.
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