Dell shares rose 2% after reporting a Q2 with stronger than expected Infrastructure Solutions sales and VMware strength. Client Solutions Group revenue missed estimates with $11.2bn versus the $11.52bn estimate. Consumer sales were up 18% and and commercial client dropped 11%. Infrastructure Solutions Group revenue totaled $8.2bn with $4bn in storage revenue and $4.2bn in servers and networking.
VMware sales increased 10% Y/Y to $2.9bn. Recurring revenue rose 15% to $6bn.
Cash from operating activities totaled $3.3bn, and Dell ended the quarter with $12.3bn in cash and equivalents after paying down $3.6bn in debt.
"We provide the technology solutions customers need to be productive and collaborative no matter where they work or learn, while delivering the data-driven insights and automation they need to innovate and transform," said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. "In Q2, we saw strength in the government sector and in education, with orders up 16 and 24 percent, respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning."
