Dell Technologies reports strong Q1 as laptop sales soar
Recurring revenues jumped 16%, while server and networking revenue fell by 10%
Dell Technologies announced financial results for its fiscal first quarter of 2021 on Thursday.
The company ended Q1 2021 with $13.2 billion in cash and investments and $27.6 billion in deferred revenue. In all, the company generated $21.9 billion in revenue in Q1, achieving $702 million in operating income.
In its announcement, Dell Technologies also shared that recurring revenues for the business reached approximately $6 billion, a 16% year-over-year increase.
In its announcement, the company gave an inside look at fiscal first-quarter revenues for its Client Solutions Group. In comparison to last year’s results, revenues in Q1 climbed 2% to $11.1 billion.
Dell attributed the revenue growth to two things: laptops sold to businesses and the sale of mobile workstation computers. In the end, Dell Technologies outperformed its competition in this arena, becoming “the only top-five vendor gaining year-over-year worldwide share in total and commercial client units.”
Dell’s Infrastructure Solutions Group, on the other hand, has experienced an 8% decrease from 2020 with $7.6 billion in Q1 revenue. Storage revenue was down 5% tool, as Q1 revenues fell to $3.8 billion.
Meanwhile, servers and networking revenue fell 10% with Q1 revenues of $3.8 billion. Dell attributed the downturn to “customers directing more spend towards remote work and business continuity solutions.”
Tom Sweet, CFO at Dell Technologies shared in the announcement of the company’s Q1 results, "Since February, almost everything in the world has changed. What remains unchanged is our ability to deliver for customers and run the business in a disciplined way for the long-term – with an emphasis on growth, share gain, and a strong capital structure."