Dell's, VMware's 4Q Results Beat Wall Street Targets
By Maria Armental
Strong notebook sales to meet high demand for remote work and
schooling during the coronavirus pandemic drove Dell Technologies
Inc.'s performance in the latest quarter and helped Dell report
record revenue for the year.
Dell's client solutions group, which includes desktops and
notebooks, saw $13.8 billion in revenue for the quarter and a
record $48.4 billion for the year, up 5% from the previous year,
the company said.
VMware Inc., which is controlled by Dell, saw a 7% quarterly
revenue increase to $3.29 billion.
"In the past year, our team rallied to support our customers and
partners worldwide as technology played a central role in keeping
our society, economy and lives moving forward," said in a statement
Jeff Clarke, Dell chief operating officer. "We generated record
revenue of $94.2 billion this year by helping customers adapt to
new work-and-learn-from-anywhere realities and are in an advantaged
position to capitalize on the projected mid-single digits growth in
IT spending in 2021."
Overall, Dell's profit for the quarter rose to $1.23 billion, or
$1.22 billion million after incremental dilution from VMware. On a
per-share basis, profit rose to $1.57, or $2.70 on an adjusted
Fourth-quarter net revenue rose to $26.11 billion, or $26.15
billion on an adjusted basis.
Meanwhile, VMware's profit for the January quarter more than
doubled to $791 million. On a per-share basis, profit rose to
$1.87, or $2.21 as adjusted.
The results beat analysts' projections, according to
Dell didn't address on an earnings release plans to spin off its
controlling stake in VMware, and VMware didn't update where the
search for its new chief executive stands. Zane Rowe, VMware's
chief financial officer, was appointed interim CEO, succeeding Pat
Gelsinger who returned to Intel Corp. as CEO.
Write to Maria Armental at email@example.com
(END) Dow Jones Newswires
February 25, 2021 16:55 ET (21:55 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.