Dell becomes GE's primary IT supplier, shows PC, hyperconverged, all-flash strength in Q2
Dell Technologies delivered second quarter revenue growth of 7 percent in its PC business and 16 percent for servers and networking, and it inked a long-term infrastructure deal with GE as the primary IT supplier.
For the second quarter, Dell, which marked the one-year anniversary of acquiring EMC, reported a net loss of $978 million on revenue of $19.3 billion. Non-GAAP second quarter operating income for continuing operations was $873 million.
The multi-year agreement with GE covers servers, storage, backup, end-user computing (PCs and thin clients), services, and peripherals. Dell said the GE deal is the largest non-government contract in Dell or EMC history. Terms of the pact weren't disclosed.
Dell's GE deal highlights how the company is taking share in key areas. Dell's client solutions group delivered second quarter revenue of $9.9 billion, up 7 percent from a year ago, with operating income of $566 million. Dell said it increased PC shipments by 3.7 percent and saw strong growth in notebooks.
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According to the company, Dell EMC, the company's infrastructure group (ISG), delivered revenue of $7.4 billion in the second quarter. Server and networking revenue was up 16 percent from a year ago. Operating income for the unit was $430 million. Dell EMC is repositioning storage for all-flash systems.
Like last quarter, Dell EMC is seeing softness in hybrid storage arrays, but growth in all-flash, hyperconverged, and software-defined systems.
Read also: Dell EMC updates software-defined, all-flash storage catalogue | Dell EMC previews new 14th generation PowerEdge Servers | Salesforce signs multi-year deal to use Dell infrastructure in its datacenters
Dell Technologies also includes VMware results. VMware accounted for 29.4 percent of the company's revenue.
In addition, Dell said it paid down $1 billion in core debt in the second quarter. At the end of the second quarter, Dell Technologies had $49.9 billion in total debt, down from $57.3 billion when the EMC purchase closed.
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