Dell Technologies announced third quarter revenue of $22.5 billion, up 15 percent from the prior period, helped by businesses upgrading their systems as Microsoft is pulling the plug on Windows 7 support.
However, net loss attributable to Dell Technologies widened to $876 million in the third quarter ended Nov. 2, from $846 million a year earlier.
"Dell Technologies has assembled a broad set of capabilities and unique position that drive an attractive financial model," said Tom Sweet, chief financial officer, Dell Technologies. "Our third quarter of double-digit growth in all three of our reportable segments shows that our customers increasingly see us as a key partner with a deep portfolio to meet their needs, from the edge to the core to the cloud."
Dell's Infrastructure Solutions Group revenue for the third quarter was $8.9 billion, a 19 percent increase. This was driven by revenue of $3.9 billion in storage, a 6 percent increase, and $5.1 billion in servers and networking, a 30 percent increase. Operating income for the third quarter was $935 million, a 7 percent increase driven primarily by server and storage mix dynamics.
The company's Client Solutions Group (PC, displays, workstations) revenue for the third quarter was $10.9 billion, up 11 percent, with growth across both Commercial and Consumer. Commercial revenue grew 12 percent to $7.6 billion, and Consumer revenue was up 8 percent to $3.3 billion. Operating income for the third quarter was $447 million, or 4.1 percent of revenue. CSG operating income was down 29 percent against a strong prior period, and foreign exchange and supply chain headwinds.
VMware revenue for the third quarter was $2.2 billion, up 15 percent, with operating income of $768 million and 34.5 percent of revenue. The company continues to see revenue synergies through the collaboration across the Dell Technologies family of businesses.
Third quarter revenue from other businesses, including Pivotal, Secureworks, RSA Security, Virtustream and Boomi, was $583 million, up 5 percent.