Dell Technologies delivered a 19 percent gain in revenue in first quarter amid strong sales in servers, networking and commercial PCs. The company said that it is seeing better market conditions due to “improving IT demand driven by digital transformation.”
The company reported a first quarter net loss of $538 million on sales of $21.36 billion. Non-GAAP operating income in the quarter was $2 billion. The company ended the quarter with $21.7 billion and paid down $600 million in core debt.
By unit, Dell’s infrastructure group delivered revenue of $8.7 billion, up 25 percent from a year ago. Servers and networking sales were up 41 percent and storage was up 10 percent. Operating income for the infrastructure group was $939 million.
Dell’s PC unit had revenue of $10.3 billion in the quarter, up 14 percent from a year ago. Commercial revenue was up 16 percent with consumer sales up 7 percent from a year ago. Operating income for the PC unit in the first quarter was $533 million.
The company’s other businesses such as Pivotal and RSA also fared well. VMware, which is rolled up into Dell Technologies results, reported strong results.
On a conference call, Dell executives noted that the company has been able to cross-sell its products well. In addition, tax reform doesn’t appear to be impacting the company’s rates or cash position.