Dell Posts $20.1 Billion in Quarterly Sales After EMC Deal
(Bloomberg) -- Dell Technologies Inc. reported revenue of $20.1 billion in its first quarterly report that fully accounts for the merger with EMC Corp.
The Round Rock, Texas-based company gave the results for its fourth fiscal quarter that ended Feb. 3, following the completion of one of the largest technology deals in history in early September. Dell reported an operating loss of $1.7 billion, according to a statement Thursday.
Chief Executive Officer Michael Dell is betting the massive merger with EMC can help the company navigate the market that’s under pressure from cloud providers such as Amazon.com Inc. and Microsoft Corp. Those rival services -- which let customers access computer and storage capabilities without the hassle of buying their own gear -- are expected to see revenue growth of 37 percent to $34.6 billion this year, according to research firm Gartner.
Dell had sales of $16.2 billion in the quarter ended Oct. 28, which included 52 days of EMC’s and VMware’s results.
Since the closing of the deal, Dell has paid down about $7 billion in debt, the company said.
VMware, also part of the Dell deal with EMC, had revenue for the fiscal fourth quarter of $1.9 billion with operating income of $565 million.
The Client Solutions Group, which includes personal computers, had sales of $9.8 billion in the fiscal fourth quarter, up 11 percent from a year earlier. The Infrastructure Solutions Group, which includes servers and storage, had sales of $8.4 billion.