NEW YORK: Dell Technologies Inc posted a 68% rise in quarterly operating profit on Monday (Nov 21), as strong demand for servers and network equipment cushioned weak personal computer (PC) sales and easing supply-chain pressures helped rein in costs.
Revenue in the companys infrastructure solutions group, which includes servers, storage devices and networking hardware, rose 12% in the third quarter.
Meanwhile, the widely recorded cooling demand for PCs and laptops from pandemic highs weighed on the company.
Consumer revenue tumbled 29% and large enterprises, or commercial, revenue, fell 13%. Total revenue slipped 6% to US$24.72 billion (RM113 billion) but beat expectations of US$24.54 billion, according to Refinitiv IBES data.
The company benefited from an improving supply chain that eased pressure from higher component and freight costs, as well as measures to reduce expenses such as a freeze on external hiring.
Operating expenses fell 8% in the third quarter ended Oct 28, the company said.
Net income tumbled 93% to US$241 million, due to the US$1 billion settlement of a lawsuit over a disputed 2018 stock swap.
Operating income rose to US$1.76 billion, from US$1.05 billion a year earlier.
Excluding items, Dell earned US$2.30 per share. – Reuters
