Dell Technologies witnessed a massive 7 percent increase in its data storage revenue as VMware business increase in number, aiding the company’s profit in the third quarter of 2019.
The company’s total revenue of $22.8 billion is a huge step up compared to its operating loss last 2018, amounting to $356 million. According to data analysts, the good storage and the rise of VMware business contributed to the revenue growth.
Dell Technologies chief financial officer Tom Sweet said, “This quarter’s results were driven by the strength of our diverse model, with our storage, commercial client and VMware businesses performing very well.”
Meanwhile, Vice Chairman Jeff Clarke mentioned how the company invests in technology that could benefit future generations. “Dell Technologies is innovating and integrating solutions across its entire portfolio to create the technology infrastructure of the future for our customers. Our highly differentiated set of offerings enables us to continue to win in a consolidating industry,” said Clarke.
The company ended the third quarter with total earnings of $9.4 million in cash and investments, after settling a gross debt of $1.1 billion. This debt covered the acquisition of EMC, which Dell Technologies paid for more than $18 billion. Since the acquisition three years ago, Dell has been paying off the gross debt from EMC.
Lack of Intel Chips
Although the revenue of the company increased, customer sales dropped to 6 percent. Dell admitted that this massive decline can be accounted for from the lack of ‘suitable’ Intel chips in the market. Not only Dell Technologies suffer from this issue but other companies in the industry as well.
Not only Intel chips affect the customer sales of Dell but also other parts as well. Dell Technologies’ groups are also affected by these problems, which is still on-going due to a shortage of supply.
Earlier this year, Intel, the manufacturer of processor chips, released a statement saying they’ve manufacturing issues which can prolong the supply of Intel chips. Since then, the company’s executives have been apologizing to its customers about the delay and shortage of supply.
In its latest financial report, Intel recorded a 6 percent decline in its revenue, about $6 billion. The company has been having troubles shipping chips with value to the PC market.
According to reports, the new and improved Intel chips will arrive in the fourth quarter of 2021.