What’s more, he said, the introduction of Microsoft Windows 11 and the ability for workers to move to more mobile platforms and replace an aging PC installed base set up for a robust demand environment that continues into next year. The “do from anywhere, work from home, learn from home, buy from home, game from home, entertain from home” paradigm is benefitting Dell, said Clarke.
#Veeam quick migration professional
“We are on track for a historic year.”ĭell’s focus on commercial PCs, premium consumer systems and professional workstations is paying off for the company, said Clarke. “We now have delivered our best third quarter ever,” said Clarke.
In after hours trading, Dell shares were up 81 cents or one percent to $55.48. That compares with the Zack consensus earnings estimate of $2.33 on sales of $27.36 billion. Overall, Dell posted earnings and sales above Wall Street expections, with non-GAAP diluted earnings per share of $2.37 on a 21 percent increase in sales to $28.4 billion. “For total client, we gained more than 300 basis points of share in calendar Q3, outgrowing the next four PC vendors combined,” he said. “Approximately 80 percent of the industry’s revenue and nearly all of the industry’s revenue growth has come from commercial PCs and premium consumer PCs, and that is where we are focused.”Ĭlarke said Dell has gained nearly 400 basis points of market share in the commercial client business in the third calendar quarter. “Our long-term focus on higher value and stable segments of the client market is what helps drive our consistent results,” said Clarke. The total client device business, which accounts for about 60 percent of Dell Technologies’ sales, was up 35 percent in the quarter to $16.5 billion, compared with $12.28 billion in the year ago quarter.ĭell’s ability to successfully deal with rising component and logistics costs in the client business resulted in record operating income in the client business of $1.1 billion, up 14 percent from $1.0 billion in the year ago period. The Dell commercial client device success comes in the midst of what some partners are calling increased channel conflict, with the company gunning for a larger share of PCs in North America.ĭell, for its part, has said it is determined to grow both its direct sales and channel sales in the client PC business. In this time and day, quick decisions equal execution.”Ĭonsumer client device revenue was up 21 percent to $4.3 billion, compared with $3.5 billion in the year ago period. That simulation allows us to make quicker decisions. We are now able to do scenario planning and simulations. “What I like about our supply chain is we have digitized it over the years. That gives us tremendous flexibility where components are.”ĭell has a “responsive supply chain that is pretty darn quick,” said Clarke. We have a design methodology that has interchangability and leverage and reuse.
Translation: we have fewer SKUs and less complexity. “We built an R&D engine that is really optimized to be able to aligned toward our direct way of selling. The logistics cost environment today is pretty challenging.” He said Dell has shifted to more air freight rather than ocean liners and is focused on making sure it puts those costs into its pricing model in the fourth fiscal quarter.Ĭlarke credited Dell’s multi-decade supply chain prowess, product design flexibility and the Dell “direct” model’s “high-quality demand signal” and “ability to shape demand” as distinct differentiators for Dell’s client systems success.ĭell’s ability to “understand the pure demand signals” from customers and then translate that quickly into its demand plan and supply chain is a key differentiator, said Clarke. “The wild card for us is the costs that we are continuing to work on is logistics. “We just went through our largest quarter-over-quarter cost increase that we have seen,” Clarke told analysts. The big commercial revenue gains came even with Dell navigating “industry-wide supply constraints” and soaring logistics costs. “We have reached record commercial revenue for each of the last three fiscal years and are on track for another strong year,” said Clarke.
The commercial client revenue for the quarter ended October 29 was $12.3 billion compared with $8.78 billion in the year ago quarter as Dell continued to benefit from a work-at-home boom sparked by the global pandemic. Dell Technologies reported an “unprecedented” 40 percent increase in commercial client device sales for its third fiscal quarter as it looks to close out an “historic year,” said Dell Vice Chairman and Co-COO Jeff Clarke.