Dell Technologies reported a surprisingly good second-quarter results on the back of improved PC unit revenues. The news signals that the demand for desktop and laptop computing remains strong.
The technology company posted second-quarter earnings of $4.5 billion (£3.6 billion) on revenues of $23.4 billion (£19 billion), up two percent from a year ago. Dell Technologies' PC unit posted revenues of $11.7 billion (£9.5), up six percent from a year ago.
"Our PC business produced record results, and we saw record cash flow," said Tom Sweet, chief financial officer, Dell Technologies. The company is well-positioned for the future, with its growing operating income and EPS increasing faster than revenue.
Dell Technologies vice chairman Jeff Clarke said the company was in the early stages of a technology-led investment cycle.
"IT spending remains healthy and our business drivers remain strong. We are innovating and integrating across the Dell Technologies portfolio, from the edge to the core to the cloud, with a diverse business designed to succeed in any macro environment."
However, its Infrastructure Solutions group revenue for the second quarter was $8.6 billion (£7 billion), a seven percent decrease year-over-year. Storage revenue was flat at $4.2 billion (£3.4 billion), while servers and networking decreased 12 percent to $4.4 billion (£3.6 billion).
VMware revenue was $2.5 billion (£2 billion) for the second quarter, up 12 percent driven by broad-based strength across a diverse product portfolio. Operating income for the second quarter was $762 million (£623 million), or 30.9 percent of VMware revenue.