(Reuters) – Dell Technologies Inc.
Shares of the company were up 2% in trading after the clock.
The COVID-19 pandemic has led to a rapid shift to cloud, leading to demand for products that organizations can continue, even as millions of people around the world work from home to stay safe, and schools to hold virtual classes.
Orders for Dell from the education sector jumped 24% to 24% in the second quarter, and government orders rose 16%.
The company also saw a rise in demand for its gaming systems, including Alienware, as more people turned to gaming while staying at home.
Revenue from the company’s largest segment, which includes desktops, notebooks and tablets, fell 4.6% to $ 11.20 billion, and data center sales fell 4.8% to $ 8.21 billion, to companies are spending their expenses on remote work, Dell said.
The software unit VMware, which directly benefited from the shift to cloud, posted a 9.7% increase in revenue to $ 2.91 billion. Dell said in July that it planned to turn its 81% stake into the unit.
The company’s total revenue fell 2.7% to $ 22.73 billion from a year earlier, but exceeded analysts’ average estimate of $ 22.52 billion, according to IBF data from Refinitiv.
Excluding items, Dell earned $ 1.92 per share, beating estimates at $ 1.40 per share.
Net income fell to about $ 1.10 billion, or $ 1.37 per share, from $ 4.23 billion, to $ 4.47 per share.
(Report by Neha Malara in Bengaluru; Edited by Shinjini Ganguli)
