Dell reported an increase in sales by 58% to $20.1 billion in the fiscal fourth quarter. The report was unveiled after completing the EMC Corp. acquisition.
Meanwhile, the company’s losses in the fourth fiscal quarter ended February 3, 2017 increased to $1.4 billion from $168 million. Dell’s operating losses reached $1.67 billion. Its revenues in the 2017 fiscal year totaled $61.6 billion, up 21% from the prior year. The net loss soared by 220% to $3.7 billion. In the 2017 fiscal year, operating losses came in at $3.3 million, up record 533% in the year.
One of the reasons behind the growing losses was the company’s merger with EMC for a whopping $67 billion two years ago. Currently, Dell is paying off a big debt of EMC. Its total amount spent for share repurchases totaled $824 million of Class V common stock.
The Infrastructure Solutions Group, which includes servers and storage, had sales of $8.4 billion, up 121% from a year ago. Client Solutions Group, which makes personal computers, had sales of $9.8 billion in the fiscal fourth quarter, up 11% from a year earlier.
Dell said its PC shipments of 11 million in the fourth quarter rose by 8.2% year over year, the largest volume of products shipped since the fourth quarter of 2011.
Infrastructure Solutions Group generated $8.4 billion of revenue in the fourth quarter and an operating income of $1 billion, up 121% from the same period a year before.
Revenue of VMware, a virtualization and cloud computing software provider, was $1.9 billion, with operating income of $565 million, or 29.2 percent of revenue in the fourth quarter.
"While Dell did not quantify any impacts from increased component pricing, nor constraints, it is clear that the company has seen a broad-based increase that will become more notable going forward," Aaron Rakers, an analyst with Stifel Nicolaus & Co., wrote in a research note.
