Dell: Fiscal 2Q19 Financial Results

Dell Technologies Inc. announces its fiscal 2019 second quarter results ended August 3, 2018.

For this quarter, global revenue was $22.9 billion, up 18%.

Infrastructure Solutions Group revenue for 2FQ19 was a record $9.2 billion, up 24% Y/Y. This was driven by revenue of $4.2 billion in storage, a 13% increase Y/Y (and 2% Q/Q), and $5.1 billion in servers and networking, increasing 34%.

Since the acquisition of EMC for a huge $63 billion in 2015, storage business got poor results but it’s going netter since two quarters. Since closing this transaction, Dell has paid down $13.7 billion of gross debt, excluding DFS related and subsidiary debt, while continuing to make appropriate and timely business investments.

Revenue for storage only

“IDC has forecasted second quarter server and external storage systems spending will grow 19.6% and 5.5%, respectively, and we fully expect Dell Technologies’ Infrastructure Solutions Group will gain share in both segments when IDC releases second quarter share data,” said Matt Eastwood, SVP enterprise, datacenter, cloud infrastructure and developer research groups, IDC.

Dell’s demand was up in both high-end storage and data protection offerings, and also strong for hyperconverged products and other software-defined solutions.

“We still have work to do [in storage] but we are confident that the decisions and investments we made are the right ones for the long-term, and we’re optimistic about our progress today“, commented CFO Tom Sweet.

VxRail and VxRack both saw triple-digit growth again this quarter. VxRail is now above a $1 billion annualized run rate

Dell expects again to gain share when the IDC 2Q19 storage market share numbers will be released.

To read the earnings call transcript