Dell Technologies Inc posted a 68 percent rise in quarterly operating profit last week, as demand for servers and network equipment softened the blow of weak PC sales, and easing supply-chain pressures helped the technology company rein in costs.
Revenue in the company’s infrastructure solutions group, which includes servers, storage devices, and networking hardware, rose 12 percent in the third quarter. However, the well-documented fall in demand for personal computers and laptops from pandemic highs weighed down on the company.
Consumer revenue fell 29 percent and large enterprises, or commercial revenue, fell 13 percent. Total revenue slipped 6 percent to $24.72 billion but beat the expectations of $24.54 billion, according to Refinitiv IBES data.
Dell 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 percent in the third quarter ending 28th October, the company revealed.
Net income tumbled 93 percent to $241 million, due to the $1 billion settlement of a lawsuit over a disputed 2018 stock swap, whereas operating income rose to $1.76 billion, from $1.05 billion a year previously.
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