Dell Technologies has posted a year-on-year revenue decline in its fiscal second-quarter results, but saw a jump in orders for education technology solutions.

The US multinational reported revenues of $22.7bn for the quarter ended 31 July, a 2.7% drop from the year-ago period. However, this fall in revenue was smaller than analysts had predicted.

Demand for virtual learning tools during the pandemic saw a 24% increase in orders from the education sector and a 16% jump from the government sector.

Revenue for Dell’s Clients Solutions Group segment, which includes remote work and learning solutions, was $11.2bn, a 4.6% decline. This was boosted by strong sales for notebooks and gaming systems, including computer hardware subsidiary Alienware.

Dell’s Infrastructure Solutions Group, which includes data centres and storage fell 4.8% to $8.2bn.

Software subsidiary VMware brought in revenue of $2.9bn in Q2, up 10% year-on-year. Dell is currently looking at spinning off the company, in which it owns an 81% controlling stake.

Dell’s overall operating income was $1.1bn, up 119% year-over-year.

Dell Q2 results: ‘as-a-service’ growth

“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%, respectively, as parents, teachers and school districts prepare for a new frontier in virtual learning.”

The company also paid down $3.5bn in debt during Q2.

“Now more than ever, customers need flexibility. We’re seeing increased adoption of our portfolio delivered as-a-service through flexible consumption solutions, which are now on a $1.3bn revenue run-rate, up 30% year-over-year,” said Tom Sweet, chief financial officer, Dell Technologies.

Like many companies during the pandemic, Dell has not provided any earnings guidance for the rest of the year.

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Diluted earnings per share were $1.37. Dell’s shares are up 19% year-to-date.


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