With strong sales of personal computers, servers and storage systems in the third fiscal quarter, Dell posted record revenues and operating margins. Revenue for the quarter ended Oct. 29 increased 21% to $ 28.39 billion from $ 23.48 billion in the same period last fiscal year. Market consensus implied growth in the indicator to $ 27.37 billion. The company's operating income increased by 19%, to $ 1.35 billion. Dell's net profit in the last quarter rose to $ 3.84 billion, or $ 4.87 per share, up from $ 832 million, or $ 1.08 per share, a year earlier. Profit excluding one-off factors was $ 2.37 per share, beating the average analyst forecast of $ 2.3 per share.
Dell's customer solutions business revenue jumped 35% in the third financial quarter to a record $ 16.55 billion, with record numbers in both consumer and commercial solutions. Personal computer sales increased by 26.6% - the highest growth rate for the third financial quarter in the company's history. Dell's Infrastructure Solutions business grew 5% to $ 8.43 billion. Chief Financial Officer Tom Sweet said during a conference call that Dell could reach $ 27-28 billion in revenues in the current quarter. IT infrastructure and digital transformation will continue to drive strong demand for computers and storage systems. While we remain positive about Dell's business, we admit that current demand for work-from-home PCs may have peaked and will slow down as the pandemic returns to business as usual.
Dell Technologies is a global provider of IT hardware systems, software, and hybrid / multi-cloud solutions. Dell sells directly to consumers as well as small-/medium-sized businesses (SMB), and large enterprises. Dell Technologies’ history started with the establishment of Dell Computer Corporation in 1984 as PC’s Limited by Michael Dell. Following the company’s$24B leveraged buyout by Mr. Dell and Silver Lake Partners in February 2013 that took the company private, the acquisition of enterprise storage and software company EMC in September 2016 led to the creation of Dell Technologies. The acquisition of EMC not only brought significant scale to Dell’s storage solutions portfolio but also included an 81% stake in VMware and RSA Security. Dell became a publicly listed company once again in December 2018 in a transaction that involved buying back Class V tracking shares for VMware stock.