Dell Technologies Announces Second Quarter Fiscal 2023 Financial Results
Dell Technologies has announced its financial results for its fiscal 2023 second quarter. The company recorded revenue of USD 26.4 billion, up 9 per cent, driven by growth across Client Solutions Group (CSG) and Infrastructure Solutions Group (ISG).
In the second quarter, Dell’s operating income was USD 1.3 billion, up 25 per cent, representing 4.8 per cent of revenue, and non-GAAP operating income was USD 2 billion, up 4 per cent, representing 7.4 per cent of revenue. Net income from continuing operations was USD 506 million and non-GAAP net income was USD 1.3 billion.
Diluted earnings per share was USD 0.68, and non-GAAP diluted earnings per share was USD 1.68.
The company’s Client Solutions Group delivered second quarter record revenue of USD 15.5 billion, up 9 per cent year-over-year. Commercial revenue was USD 12.1 billion, a 15 per cent increase year-over-year, and Consumer revenue was USD 3.3 billion, down 9 per cent year-over-year. Their focus on the commercial market continues to drive differentiated share results, with share gains in 34 of the last 38 quarters.
Operating income was USD 1 billion, or approximately 6.3 per cent of Client Solutions Group revenue.
On the other hand, Dell’s Infrastructure Solutions Group delivered record second quarter revenue of USD 9.5 billion, up 12 per cent and its sixth consecutive quarter of year-over-year growth. Storage revenue was USD 4.3 billion, up 6 per cent, with growth across the portfolio and demand strength in high-end storage and its marquee mid-range product PowerStore, which has now grown every quarter since its launch.
Servers and networking revenue was USD 5.2 billion, up 16 per cent year-over-year. Operating income was USD 1 billion or approximately 11 per cent of Infrastructure Solutions Group revenue.
Dell Technologies ended the quarter with remaining performance obligations of USD 41 billion, up 2 per cent year-over-year, deferred revenue of USD 28 billion, and cash and investments of USD 7.1 billion. Recurring revenue for the second quarter was approximately USD 5.2 billion, up 8 per cent year-over-year. APEX annual recurring revenue is now over USD 1 billion, with second quarter orders growth of 78 per cent year-over-year.
"We delivered strong CSG and ISG growth and profitability – with revenue up 12 per cent and 9 per cent respectively – although we observed more cautious customer behavior as the quarter progressed," said Chuck Whitten, co-chief operating officer, Dell Technologies.
"Customers continue to prioritize advanced technology solutions to compete and succeed in the years ahead, and we are confident in our long-term opportunities," he added.
Also Read: Dell Technologies Deep Learning Model To Help Protect The Great Barrier Reef
