Dell’s results for the second quarter of the year caught pretty much everyone by surprise, as its PC unit delivered record revenue. In its quarterly report, Dell said that enterprise demand remained strong, and “IT spending remains healthy”.
In the second quarter, the company earned $4.5 billion, which equals to $4.83 per share. Its revenue was $23.4 billion, a two per cent increase compared to the same period last year.
"We are in the early stages of a technology-led investment cycle. IT spending remains healthy and our business drivers remain strong," commented Dell Technologies vice chairman Jeff Clarke.
Looking at the company’s PC department in particular, it recorded a six per cent increase in revenue, compared to the same period last year. It raked up $11.7 billion, with commercial revenue taking up $9.1 billion. That’s 12 per cent up compared to last year.
Consumer revenue, on the other hand, fell by 12 per cent, signalling that the company’s earnings are mostly driven by enterprise demand.
Dell’s infrastructure department brought in $8.6 billion (seven per cent less year-on-year), while networking and servers fell 12 per cent.
It is slowly pulling out of the debt caused by the EMC acquisition. It is now $36.4 billion in core debt, compared to $48.8bn it had when it wrapped up the acquisition.
"We are committed to de-levering and achieving investment grade ratings," the company said.