Dell Technologies sees a rise in Q1 2018 revenue but its losses increase due to the components costs and decline in server market.
Dell Technologies revealed its 2018 first quarter results, which showed an operating loss of $1.5 billion that the company says is a reflection of the impact following the EMC transaction.
Although together with EMC, the company increased revenue to $17.8 billion up by 46 percent from the previous year.
The loss is expected to have been generated from the $7.1 billion gross debt that Dell saw after the deal between the two companies was closed.
Dell Technologies focused on the positives from the results, saying that the company encouraged by the results. Tom Sweet, CFO of the company said: “We’re pleased with the overall results in the first quarter of our new go-to-market structure and the demand velocity we saw in a challenging component cost environment.
“I’m encouraged by these achievements and excited about the opportunities ahead as we continue to provide a broad portfolio of solutions for our customers’ digital transformations.”
Read more: Server revenues decline despite hyperscale data centre growth
The company’s Client Solutions Group, which covers half of Dell Technologies business earnings, was reported to have outgrown the overall PC market in delivering both commercial and consumer products. This gathered revenue of $9.1 billion, with a six percent year-over-year increase.
Dell’s Infrastructure Solutions Group mainly noted for its data centre hardware generated revenue of $6.9 billion, $3.2 billion of which came from server shipments and networking and the remaining $3.7 billion in storage. This is up by 91 percent from the previous year.
The company says it remains as a “worldwide market share leader” in x86 servers which could be so for shipments, however, Gartner says HPE takes the top position for server sales, while Dell EMC takes the top spot for shipments despite there being a decline in the market.
Dell revealed that its current problem stems from its component costs, but the company saw an increase in customer demand for its Virtustream Public Cloud and revenue of $1.7 billion from its VMware segment.
In a conference call regarding the results, Sweet said: “We expect improvement over the course of the year as we refine the alignment of our sales force and our go-to-market changes mature and as we improve storage velocity.”