Dell Technologies Inc. reported strong earnings in its fiscal second quarter — the first earnings report since the Round Rock-based tech giant announced its $21.7 billion deal to return to the public markets.
Dell on Thursday reported 18 percent year-over-year growth for its fiscal second quarter. Revenue increased from $19.5 billion one year ago to $22.9 billion.
The company also beat Wall Street expectations and raised its full year revenue guidance, saying it now expects adjusted revenue of between $90.5 billion and $92 billion.
“We are in the early stages of a global, technology-led investment cycle in which every company is becoming a technology company,” Dell founder and CEO Michael Dell said. “As our results indicate, Dell Technologies is perfectly positioned to grow, gain share, drive innovation and be our customers’ best, most trusted partner on the journey to their digital future.”
Dell has decreased its debt by $2.4 billion from the previous quarter, the company said. Much of the company’s $50.3 billion debt is from Dell’s $67 billion buyout of EMC.
Similar to its last earnings report, the company said demand was up in both high-end storage and data protection offerings.
Thursday was the first earnings report since Dell’s announcement of a $21.7 billion deal that would dip the company back into the public waters just five years after going private.
However, the plan is not through an initial public offering — the usual option, which also hands over substantial control to the open market — but through an unusual avenue created by its 2016 purchase of data storage giant EMC Corp.
In July, the company said it was buying out shareholders of a tracking stock it formed through the EMC acquisition to create a new class of publicly traded common shares. The tracking stock, which trades under the tracker DVMT, has mirrored Dell’s 81 percent ownership in VMware, the cloud computing subsidiary it has controlled since taking over EMC.
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