Dell: Fiscal 4Q18 Financial Results

About all businesses up but storage (-11% Y/Y)
By Jean Jacques Maleval on 2018.03.12

(in $ million) 4Q17 4Q18 FY17 FY18
Revenue 4,783 4,236 8,942 15,254
Growth   -11%   71%

Dell Technologies, Inc. announces its fiscal 2018 fourth quarter and full year results for the period ended February 2, 2018.

The company recorded a relatively good quarter with all businesses but storage with revenue down 11% Y/Y but up 16% Q/Q at $4.2 billion. For the first time since the transaction of EMC closed, storage demand grew yearly.

Infrastructure Solutions Group revenue for the fourth quarter was $8.8 billion, a 5% increase. This was driven by $4.6 billion in servers and networking, a 27% increase, and $4.2 billion in storage. Revenue for the full year was $30.7 billion, with servers and networking revenue at $15.4 billion and storage revenue at $15.3 billion.

All-flash business exited the year at a demand run-rate of nearly $5 billion, Dell said that it is leader in all-flash arrays with nearly one-third of WW revenue market share.

Hyperconverged portfolio continued its triple-digit demand growth, with strength in VxRail while demand for our Isilon scale-out NAS and all-flash arrays grew double-digits over the year.

The company already started to simplify its product offerings in how to go to market. For example, it will be aligning its software-defined storage strategy to vSAN, offering VxRail and VxRack SDDC. It started shipping the enhanced mid-range storage products announced in November and expanded the Future-Proof Storage Loyalty Program to all of its storage products shortly after it launched.

Dell saw improvement in the traditional storage demand as it exited the year.

The growth of 71% in FY18 from FY17 is not significant as its does not include EMC results for the first and second quarters and a portion of the third quarter in FY17.

For 4Q17, IDC ranked Dell number two in WW enterprise storage systems with revenue down 11.4% Q/Q, and number one in WW external enterprise storage systems quarterly decreasing 17.7%.

To read the earnings call transcript

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