Company cleared $2.6 billion of core debt in Q2
Dell Technologies says it shipped levels of hardware in Q2, reporting double-digit growth across its three reporting segments in quarterly results posted today, to post an operating loss of $13 million on revenues of $22.9 billion.
It’s infrastructure solutions segment performed strongly, with revenue of $5.1 billion in servers and networking, a 34 percent increase.
The company is firmly focussed on paying off debt and in the quarter paid down approximately $2.6 billion of core debt; it has now cleared some $13.7 billion in gross debt over the past two years, the Texas-based company said.
Dell Results: Quarterly Highlights
Key quarterly highlights included shipping a record number of client units in the second fiscal quarter, while also expanding average selling prices, the company said, adding that it had “outperformed the PC industry and hit highest share position to date for total worldwide units and for commercial units at 18.2 percent and 22.8 percent”.
“We are in the early stages of a global, technology-led investment cycle in which every company is becoming a technology company,” said Michael Dell, chairman and CEO, Dell Technologies. “As our results indicate, Dell Technologies is perfectly positioned to grow, gain share, drive innovation and be our customers’ best, most trusted partner on the journey to their digital future.”
The company’s highlights for the quarter included ranking as worldwide leader for x86 servers in calendar second quarter, both in units and revenue, and posting triple-digit growth for VxRail and VxRack, including $1 billion of cumulative revenue for VxRail – a hardware device that provides multiple data center management technologies within a single box.
“IDC has forecasted second quarter server and external storage systems spending will grow 19.6 percent and 5.5 percent, respectively, and we fully expect Dell Technologies’ Infrastructure Solutions Group will gain share in both segments when IDC releases second quarter share data,” said Matt Eastwood, senior vice president of IDC’s enterprise, datacenter, cloud infrastructure and developer research groups.
To be updated after conference call.