Dell Technologies on Thursday reported 9 percent year-over-year revenue growth in its fiscal fourth quarter, but the Round Rock-based tech giant also logged a $511 million loss.
Driven by record holiday sales, PC-market share growth and strong revenue from its data storage divisions, Dell reported record revenue of $21.9 billion for the quarter ending on Feb. 2.
Dell reported a loss of $511 million for the quarter, up from $236 million in the same quarter the previous year. However, the company said it lowered its loss for continuing operations by about 60 percent for the quarter to $553 million, from $1.4 billion in the same quarter the previous year.
For its full fiscal year, Dell’s revenue increased by 28 percent to $78.6 billion.
“What we are seeing is continued investment mode,” industry analyst Patrick Moorhead said. “I expect the company to invest in demand creation in mid-markets storage and to simplify their overall storage portfolio.”
Dell’s net loss for the full fiscal year was $3.73 billion, up from $1.67 billion the previous year. For the full fiscal year, the company’s loss from continuing operations was $3.85 billion, up 3 percent than the year’s $3.74 billion.
For the quarter, Dell reported EBITDA - earnings before interest, taxes, depreciation and amortization -- of $1.8 billion, up more than 380 percent the same quarter the previous fiscal year. For the full year, Dell reported EBITDA of $5.3 billion, more than double the previous fiscal year.
Dell has been working to pay off the debt incurred by its purchase of data storage giant EMC Corp. in 2016. Since closing the EMC deal in September 2016, Dell has paid of $10 billion in gross debt, according to the company’s performance review for the fiscal year.
Dell reported it paid off $300 million in debt in its fourth quarter after having paid off $1.7 billion in its third quarter. The company ended the fiscal year with $52.7 billion in total debt.
The company said its sales were affected positively subsidiary VMware, which saw its revenue increase 20 percent to $2.3 billion in the fourth quarter.
This was Dell’s first earnings report that could fully be compared year-over-year since its EMC acquisition. While Dell remains private, it reports earnings due to a special stock created through its purchase of EMC.
In February, Dell confirmed that it is exploring a possible initial public offering or reverse merger with VMware as it deals with its debt.
“With our industry leadership, innovation and laser-like focus on making our solutions easy to buy and own, we’ll continue in fiscal year 2019 to deliver on the commitments we make to customers,” Jeff Clarke, a Dell executive, said in a written statement.
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