Dell quarterly profit jumps on higher server demand, lower costs
Net income tumbled 93% to $241 million.
(Reuters) - Dell Technologies Inc (DELL.N) posted a 68% rise in quarterly operating profit on Monday, as 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% in the third quarter.
Meanwhile, the widely recorded cooling demand for personal computers and laptops from pandemic highs weighed on the company.
Consumer revenue tumbled 29% and large enterprises, or commercial, revenue, fell 13%. Total revenue slipped 6% to $24.72 billion but beat expectations of $24.54 billion, according to Refinitiv IBES data.
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.
Operating expenses fell 8% in the third quarter ended Oct. 28, the company said.
Net income tumbled 93% 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.
Excluding items, Dell earned $2.30 per share.