Dell: Fiscal 3Q21 Financial Results

For storage only

(in $ million)	3FQ20	3FQ21	9 mo. 20	9 mo. 21
Revenue	4,149	3,860	12,355	11,682
*Growth*		-7%		*-5%*

Dell Technologies, Inc. announces financial results for its fiscal 2021 third quarter.

Global revenue was up 3% Y/Y to $23.5 billion.

Infrastructure solutions group revenue for 3FQ21 was $8.0 billion, with customers continuing to direct more spending towards remote work and business continuity solutions.

Storage revenue was $3.9 billion down 7% Y/Y and 4% Q/Q, while servers and networking sales were $4.2 billion. It’s the fourth consecutive quarter of decline for storage.

Though disappointed in the decline, the overall server and storage market has been softer than expected coming into this year.

PowerMax and HCI, specifically VxRail were up double-digits based on orders. The company continued to see softness in other areas of core storage, including mid-range.

Storage demand was mixed, with relative performance given current market dynamics. Bright spots included PowerMax and HCI, each growing double-digits in 3FQ21 on an orders basis.

PowerStore is progressing and are seeing early wins as customers transition from existing Unity, SC, VNX, Equallogic and XtremIO products. 15% of the PowerStore customers are new storage buyers. The firm delivered nearly double the orders revenue achieved in 2FQ21, albeit on a small base, it is still early in the ramp.

PowerStore is expected to ramp through the rest of this year and into FY22.

Dell has been named #1 by IDC in 2Q20:

in storage platforms for private cloud with 23.8% share
in hyperconverged systems with 27.9% share
in external enterprise storage with 27.0% share
in storage software with 11.1% share
in AFA with 31.3% share
in purpose-built backup appliance with 48.3% share

The company expects for FY10 storage being up nearly 5% as typically, 4FQ21 is a larger quarter in this business. For FY20 it was at $16,767 million and, to reach this sum, Dell will have to record unlikely $4,849 million in next quarter, or +17% Y/Y.

Storage revenue of Dell
(in $ million)

Period	Revenue	Y/Y growth
FY11*	2,295	5%
FY12*	1,943	-15%
FY13*	1,699	-13%
FY14*	1,518	-11%
FY15*	1,437	-5%
FY16*	2,217	54%
FY17**	8,942	303%
FY18	15,254	+71%
1FQ19	4,082	+10%
2FQ19	4,166	+13%
3FQ19	3,883	+6%
4FQ19	4,636	+7%
FY19	16,767	+10%
1FQ20	4,022	-1%
2FQ20	4,184	0%
3FQ20	4,184	+8%
4FQ20	4,487	-3%
FY20	16,767	-0%
1FQ21	3,758	-7%
2FQ21	4,011	-4%
3FQ21	4,149	-7%

* Without EMC
**without EMC for 1FQ17 and 2FQ17 following acquisition for $63 billion

Earnings call transcript