Dell reports sales of $19B on anniversary of EMC deal
(Bloomberg) -- On the one-year anniversary of its historic tie-up with EMC, Dell Technologies Inc. is showing that bigger can be better.
The company reported sales of more than $19 billion in its fiscal second quarter, bolstered by purchases of servers, networking equipment and computers. The company whittled down its debt, and narrowed its operating loss from the previous quarter.
Michael Dell has assembled a massive company to help push back against the rising demand for cloud providers such as Amazon.com Inc. and Microsoft Corp. that let businesses easily access computing power without building more data centers. The company -- formed in the more than $60 billion EMC deal-- is investing in new products and partnerships to woo dollars away from the encroaching rivals while also keeping traditional competitors, such as Hewlett Packard Enterprise, at bay. That’s included selling heftier storage gear and more powerful servers.
During the quarter ended Aug. 4, sales were $19.3 billion, Dell said. It had an operating loss of $979 million. In the previous period, sales were $17.8 billion and an operating loss of $1.5 billion.
The group that includes servers and storage had sales of $7.4 billion, and an operating income of $430 million. Server and networking revenue was $3.7 billion, up 16 percent from the year-ago period. The unit with computers had revenue of $9.9 billion, an increase of 7 percent from the year-ago period, as operating income rose. That was also the highest sales quarter for the group since the second fiscal quarter of 2015.
Since completing the EMC deal, Dell has paid down about $9.5 billion in gross debt, excluding Dell Financial Services debt.