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The results contrasted rivals HP and Lenovo Group, but a
full recovery remains some ways off as Dell forecast current-quarter revenue
below Wall Street targets and warned that IT spending would stay cautious.
Shares of the company were down 2 percent after the bell,
reversing gains of 5 percent. The stock was briefly halted during regular
trading hours when the company announced results earlier than scheduled.
"We maintained pricing discipline, reduced operating
expenses, and our supply chain continued to perform well after normalizing
ahead of competitors," said Chuck Whitten, co-chief operating officer of
Dell.
Total operating expenses fell 6 percent to $3.57 billion during
the first quarter.
The company's revenue dropped 20 percent to $20.92 billion but came in above analysts' expectations of
$20.27 billion , according to Refinitiv data.
Demand for desktops and laptops slumped after a
pandemic-driven rush for work-from-home equipment, leading to a pile-up in
inventory amid an uncertain economic outlook.
Dell's client solutions unit - home to its consumer and
enterprise PC business - posted a 23 percent fall in sales, while the
infrastructure solutions unit, which includes servers, storage devices, and
networking hardware, saw an 18 percent decline.
Excluding items, Dell earned $1.31 per share, compared with estimates of 86
cents.
The Texas-based company expects second-quarter revenue to be
between $20.2 billion and $21.2 billion , below expectations of $21.2 billion
at the midpoint. © Reuters
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