Dell Technologies said it forecast first-quarter revenue to decline between 17 percent and 21 percent due to poor demand for PCs and servers.
“Underlying demand in PCs and servers remains weak and we are seeing signs of changing customer behavior in storage,” said Chuck Whitten, Dell’s co-chief operating officer.
“We saw lengthening sales cycles and more cautious storage spending with strength in very large customers offset by declines in medium and small business.”
Dell Technologies has reported revenue of $102.3 billion (+1 percent) with operating income of $5.8 billion (+24 percent) in its fiscal 2023.
Dell Technologies in its earnings report said it has reported revenue of $25 billion (–11 percent) with operating income of $1.2 billion in Q4.
Infrastructure Solutions Group delivered record revenue of $38.4 billion (+12 percent) with operating income of $5 billion (+35 percent) for the full year. Infrastructure Solutions Group generated Q4 revenue of $9.9 billion (+7 percent). Servers and networking revenue in Q4 $4.9 billion (+5 percent). Storage revenue was $5 billion (+10 percent).
Client Solutions Group delivered revenue of $58.2 billion (–5 percent) with operating income of $3.8 billion (–12 percent) for the full year. Client Solutions Group generated Q4 revenue of $13.4 billion (–23 percent) operating income of $671 million (–42 percent). Commercial revenue of Client Solutions Group for the fourth quarter was $10.7 billion, down 17 percent, and Consumer revenue was $2.7 billion, down 40 percent.
“In FY23, we accelerated our innovation agenda, drove share gains and delivered strong profitability in a challenging environment – resulting in record revenue of $102.3 billion, record operating income and record ISG revenue of $38.4 billion,” said Chuck Whitten, co-chief operating officer, Dell Technologies.
“In ISG we had our eighth consecutive quarter of growth in the fourth quarter with revenue of $9.9 billion, record profitability, and record storage revenue of $5 billion. In CSG, we are focusing on the most profitable segments of the PC market to outperform the industry. We are poised to capture growth even as customer spending priorities shift,” Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies, said.
