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Dell posts surprise revenue rise on booming demand for remote-work tools

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Dell Technologies Inc reported a surprise rise in third-quarter revenue on Tuesday, driven by buoyant demand for its desktops and notebooks from remote workers and learners during the Covid-19 pandemic.

[BENGALURU] Dell Technologies Inc reported a surprise rise in third-quarter revenue on Tuesday, driven by buoyant demand for its desktops and notebooks from remote workers and learners during the Covid-19 pandemic.

The PC maker's shares were last up marginally in volatile after-market trading, as adjusted earnings matched Wall Street expectation of US$2.03 per share.

Consumers and businesses are spending on notebooks at a rate Dell has not seen in over a decade, according to an earnings presentation, helping its client solutions group rake in a record US$12.29 billion in revenue, up about 8 per cent from a year earlier.

Global shipments in the traditional PC market, which includes desktops, notebooks, and workstations, jumped 14.6 per cent year-over-year to 81.3 million units in the third quarter of 2020, according to data from IDC.

While the health crisis lifted demand for Dell's remote workstation products, the company's data center business remained under pressure.

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Revenue from its data center business fell about 4 per cent to US$8.02 billion in the quarter.

Sales at VMware Inc rose about 8 per cent to US$2.89 billion.

Dell plans to spin off its 81 per cent stake in the software unit to help reduce debt.

Total revenue rose nearly 3 per cent to US$23.48 billion in the three months ended Oct 30, while analysts had estimated a drop of 4.4 per cent to US$21.85 billion, according to IBES data from Refinitiv.

Net income attributable to the company rose to US$832 million, from US$499 million a year earlier.

REUTERS

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