Dell Technologies said revenue fell 6 percent to $24.7 billion and operating income rose 68 percent to $1.8 billion with net income of $241 million for its fiscal 2023 third quarter.
Dell Technologies said its 68 percent rise in quarterly operating profit was mainly due to strong demand for servers and network equipment cushioned weak PC sales and easing supply-chain pressures helped rein in costs.
Revenue in the company’s infrastructure solutions group, which includes servers, storage devices and networking hardware, rose 12 percent in the third quarter to $9.6 billion. Dell achieved seventh consecutive quarter of year-over-year growth in Infrastructure Solutions Group. Servers and networking revenue rose 14 percent to $5.2 billion. Storage revenue grew 11 percent to $4.4 billion.
Meanwhile, the widely recorded cooling demand for personal computers and laptops from pandemic highs weighed on the company and revenue fell 17 percent to $13.8 billion.
Dell said Consumer PC revenue tumbled 29 percent to $3 billion. Large enterprises, or commercial PC revenue, fell 13 percent to $10.7 billion.
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, Reuters news report said.
Operating expenses fell 8 percent in the third quarter ended Oct. 28, the company said.
Net income tumbled 93 percent to $241 million, due to the $1 billion settlement of a lawsuit over a disputed 2018 stock swap.
Operating income rose to $1.76 billion, from $1.05 billion a year earlier.
“We played our hand in Q3 exceptionally well; it’s what we do,” said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. “We reduced backlog to meet customer needs and deliver record business results, including record third quarter ISG revenue of $9.6 billion. At the same time, our innovation engine is operating at full throttle in strategic areas like edge, multicloud and as-a-Service.”
“We executed Q3 with focus and delivered strong operating results, successfully navigating the challenging environment we highlighted in our Q2 earnings call,” said Chuck Whitten, co-chief operating officer, Dell Technologies. “With the industry’s largest direct sales force and our technology ecosystem, we anticipated the changing landscape and responded quickly. We managed slower demand and drove record profitability, with record operating income of $1.8 billion.”