On the anniversary of its purchase of data storage giant EMC Corp., Dell Technologies on Thursday reported sales of $19.3 billion for its fiscal second quarter. The company’s revenue grew 8 percent from the previous quarter.
The sales growth was largely due to purchases of computers, servers and networking equipment. The company also paid down $1 billion in debt and narrowed its operating loss from the previous quarter.
“In the second quarter, we generated strong cash flow and made progress on our de-levering goal,” said Dell Technologies chief financial officer Tom Sweet.
Round Rock-based Dell Technologies is now a tech conglomerate that sells a lot more than computers.Since acquiring EMC, Dell is now a company of 140,000 people.
The company took on a lot of debt to pay for the EMC purchase. Dell Technologies’ total debt load is $57.3 billion, a slight decrease from the quarter before.
The PC side of the business now only makes up about half of the company’s overall revenue. Dell also sells servers, storage and networking equipment.
During Dell’s fiscal second quarter, which ended on Aug. 4, it reported a loss of nearly $1 billion. When adjusted for one-time costs and gains the company reported profit of $873 million.
Dell’s operating loss was $979 million, which is about $500 million less than the quarter before.
It’s difficult to make year-over-year comparisons because Dell Technologies’ results from the second quarter of last year did not include revenue and expenses from the EMC side of the business.
Only its PC division is easily compared to the year before. Dell reported sales of $9.9 billion in its PC group, an increase of 7 percent from a year ago. It’s also the highest sales quarter for that group in three years.
Dell also reported sales growth from its server and networking products from the previous quarter, but storage sales were flat.
Dell Technologies is still a privately held company but is publicly reporting its financial results because of a special stock the company created when it purchased EMC. Known by the ticker symbol DVMT, the stock was designed to track Dell's economic interest in VMware.
-Additional material from Bloomberg News.
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