Dell Technologies revenue grows 9% to $26 bn in Q4

Dell Technologies said its total revenue rose 9 percent to $26.1 billion in the three months ended Jan. 29, helped by demand for its desktops and notebooks as most offices continued to work remotely during the COVID-19 health crisis.
Dell Technologies at MWC 2017
Net income rose to $1.2 billion from $408 million a year earlier, as it shaved off administrative costs by 19 percent in the quarter.

Revenue from its client solutions group, which includes desktop PCs, notebooks and tablets, was $13.8 billion, up 17 percent from a year earlier. The company said it had shipped a record 50.3 million units during 2020.

A shift to remote work and learning early last year had spiked demand for remote workstation products that benefited computer hardware makers and cloud service providers alike.

Dell is in an advantaged position to capitalize on the projected mid-single digits growth in IT spending in 2021, Chief Operating Officer Jeff Clarke said.

Revenue from its data center business was $8.8 billion in the quarter, in line with a year earlier, while sales at VMware Inc was $3.3 billion. Dell plans to spin off its 81 percent stake in the software unit to help reduce debt.

Dell Technologies said its full-year revenue was a record $94.2 billion, up 2 percent over the prior year. The company generated record operating income of $5.1 billion, a 96 percent increase over the prior year.

“We generated record revenue of $94.2 billion this year by helping customers adapt to new work-and-learn-from-anywhere realities and are in an advantaged position to capitalize on the projected mid-single digits growth in IT spending in 2021,” Jeff Clarke said.

Client Solutions Group delivered record results, with revenue for the fourth quarter of $13.8 billion, up 17 percent year over year. This was driven by $9.9 billion in commercial revenue – a 16 percent increase – and $3.8 billion in consumer revenue – a 19 percent increase.

Dell shipped a record 50.3 million units during the 2020 calendar year, an 8 percent increase year-over-year.

Dell is the only big 3 vendor to gain Commercial PC share in calendar year 2020.

Dell achieved strong growth in Latitude and Precision notebooks and Commercial Chromebooks.

Infrastructure Solutions Group revenue for the fourth quarter was $8.8 billion, flat year-over-year. Storage revenue was $4.4 billion – down 2 percent – while servers and networking revenue was $4.4 billion – up 3 percent.

PowerStore orders up 4X quarter-over-quarter, as customers embrace the next generation of modern data center technology and applications.

Dell achieved strong year-over-year growth in PowerMax, HCI and PowerProtect Data Domain.

Dell launched new HCI, cloud, storage and data protection integration with latest VMware releases to help customers innovate across edge locations, data centers and hybrid clouds.

VMware revenue for the fourth quarter was $3.3 billion, with operating income of $1.1 billion driven by broad-based strength across a diverse product portfolio.