After close of EMC deal, Dell Technologies reports quarterly revenue of $20.1 billion

Round Rock-based tech giant reports a loss of $236 million for the quarter.

Posted March 30th, 2017

Dell Technologies had revenue of $20.1 billion in its first full quarter as a combined company after buying data storage company EMC Corp., Dell officials reported Thursday.

The Round Rock-based technology giant reported a loss of $236 million in the quarter that ended Feb. 3.

Dell Technologies’ purchase of EMC for $58 billion last September was designed to accelerate a transformation Dell began years ago when it expanded beyond personal computers into servers and other IT operations. 

The company is increasingly focused on being an end-to-end IT provider to its customers. This means providing everything from servers and storage, to computers for their workforce. 

Dell Technologies’ fiscal fourth quarter results marked the first time that its personal computing segment no longer made up a majority of its sales

Still, Dell’s personal computing business segment reported strong sales growth. 

RELATED: As Dell expands into servers and storage, PC business is boosting revenue

Sales in the fiscal fourth quarter grew 11 percent to $9.8 billion from the same quarter a year ago. (The most recent quarter does include an extra week.) For the full fiscal year, revenue was up 2 percent.

Dell said it shipped 11 million PCs in the fourth quarter, the largest volume since the fourth quarter of 2011.

It’s difficult to compare Dell Technologies’ financial results in its other business segments from the previous year because those results were before the company’s acquisition of EMC.

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 tracking stock was designed to track Dell’s economic interest in VMware. 

Analysts in particular are watching Dell’s debt payments because the company took on significant amounts of debt to pay for the EMC deal.

The company said Thursday that it has paid off about $7 billion in debt. Dell Technologies now has $50.4 billion in debt remaining. 

“We remain focused on our plan to de-leverage,” chief financial officer Tom Sweet said during Thursday’s conference call with analysts. He repeated this phrase several times throughout the call. 

For the full year, Dell Technologies had $61.6 billion in sales and a loss of $3.7 billion. Its results are affected by costs and accounting adjustments related do the EMC transaction.

Dell Technologies used to be called just “Dell” prior to its purchase of EMC. As part of the merger of the two companies, Dell changed its name to Dell Technologies.