Dell reports rising sales amid planned return to public markets

By BLOOMBERG

SAN FRANCISCO • Dell Technologies Inc, the world’s largest closely held technology company, reported growing sales, and increased its outlook for the year, in the middle of its US$21.7 billion (RM90.06 billion) plan to return to public markets.

Second-quarter (2Q) revenue increased 18% to US$22.9 billion in the period ended Aug 3, the Round Rock, Texas-based company said yesterday in a statement. Adjusted earnings before interest, tax, depreciation and amortisation climbed 13% to US$2.46 billion.

For fiscal 2019, Dell now expects adjusted revenue of as much as US$92 billion and adjusted net income of as much as US$5.3 billion.

The strong performance in the 2Q may boost CEO Michael Dell’s efforts to shepherd the hardware maker to a public listing, five years after taking it private. To bolster growth, Dell has revamped its lineup of personal computers and sought closer product tie ups with fast-growing software maker VMware Inc, in which the company owns a controlling stake.

The efforts, aided by a favourable environment for corporate information technology spending, seem to be paying off.

Dell has sought to improve its profits in a bid to service its long-term debt, which stood at more than US$44 billion as of May 4, according to an August regulatory filing. Much of the debt stems from the company’s US$67 billion takeover of EMC Corp in 2016. Dell’s income excluding some items jumped 21% to US$1.3 billion in the quarter.