Dell: Fiscal 1Q19 Financial Results

For storage only

Dell Technologies, Inc. announces its 1FQ19 year results for the period ended May 4, 2018 with global revenue of $21.4 billion, up yearly 19%.

Last quarter Dell’s storage demand was down 11% Y/Y but up 16% Q/Q at $4.2 billion.

The last three-month period was the first quarter of storage share gain since closing the EMC transaction for $63 billion and announced in October 2015, but with sales at $4.1 billion decreasing by 4% Q/Q.

The IT giant recorded double-digit growth in commercial client, servers, storage and VMware.

Infrastructure Solutions Group revenue for the first quarter was $8.7 billion, a 25% increase. This was driven by 41% year-over-year growth in servers and networking to $4.6 billion and 10% growth in storage. Operating income was $939 million or 11% of revenue for the first quarter.

Following positive demand growth in its fiscal fourth quarter, Dell expects to gain share year-over-year in storage when the first calendar quarter 2018 storage industry share numbers are final.

“Storage systems spending is forecasted to grow 9.8% year-over-year in the first quarter of 2018 and we expect, when IDC releases first quarter market share, Dell EMC’s storage business will outperform the market and gain share,” said Matt Eastwood, SVP of IDC’s enterprise, datacenter, cloud infrastructure and developer research groups.

Tom Sweet, Dell’s CFO, commented: “We exited last year with better storage velocity on a demand basis leading to double digit revenue growth in Q1. We were encouraged by the improved demand in the commercial mid-range portion of the storage market where we’ve been making go to market investments and enhancements to our solutions offerings.”

Jeff Clarke, vice-chairman, products and operations, added: “For Q1, overall storage demand was lower, but Q1 is our seasonally lowest quarter as we build through the rest of the year. We did see strong demand for our market leading hyper-converged portfolio and other software-defined offers, as customers are looking to modernize through datacenter, including triple digit growth in both our VxRail and VxRack offerings. We also saw positive demand in our commercial customer segment with positive growth in mid-range storage.”

To read the earnings call transcript