Dell: Fiscal 1Q21 Financial Results

Storage revenue

Dell Technologies, Inc. announces financial results for its fiscal 2021 first quarter ended May 1, 2020.

Global revenue for the quarter was $21.9 billion, -9% Q/Q and almost identical Y/Y, with VMware successful with sales up 20% Y/Y with especially NSX and vSAN growth.

Infrastructure Solutions Group (ISG) revenue for 1FQ21 was $7.6 billion, an 8% yearly decrease, with customers directing more spend towards remote work and business continuity solutions. Operating income was $732 million for the most recent quarter, or 10% of Infrastructure Solutions Group revenue.

Inside this business, storage was disappointing, reaching $3.8 billion, down 7% Y/Y and 16% Q/Q. Servers and networking revenue was $3.8 billion, down 10%.

Nevertheless, note that the first quarter is typically the lightest quarter for ISG, particularly storage, as it historically builds throughout the year.

The firm saw double-digit demand growth in VxRail and in high-end PowerMax solution and solid demand in unstructured storage, offset by softness in other areas of core storage.

And though it expects its external storage share to be roughly flat in 1CQ21, it expects share growth in high-end, purpose-built back-up appliances and unstructured arrays.

In HCI, the company claimed ≠1 position with 33.3% share, citing IDC figures.

Earnings call transcript