Dell Posts Modest Revenue Growth on Eve of EMC Merger

By Tess Stynes 

Dell said its revenue rose 0.6% as the company reported results for its latest quarter on Tuesday, the eve of the closing of its $60 billion acquisition of data-storage company EMC Corp.

The newly combined entity will be named Dell Technologies after the deal's closing, which has been set for Wednesday. The merged company plans to consolidate diverse products and services under one umbrella, including personal computers, servers, storage and networking equipment.

Dell, a leading maker of personal computers and servers, has been battling a weak PC market as users turn to mobile devices. In acquiring EMC's line of data-storage hardware -- including VMware Inc.'s data center software -- it aims to create the leading one-stop shop for information technology sold to businesses.

For the three-month period ended July 29, Dell reported that its revenue increased to $13.05 billion from $12.98 billion a year earlier.

The Round Rock, Texas, company said its global market share in commercial personal computers improved by 0.9 percentage point, while its share in the consumer PC market rose by 1.1 point.

The company said that server and networking revenue improved by 1%, while sales of its storage SC series products grew 13%.

Over all, Dell reported a loss from continuing operations of $264 million, compared with a year-earlier loss from continuing operations of $292 million. Excluding certain items, adjusted operating income rose to $752 million from $568 million.

Write to Tess Stynes at [e-mail]

(END) Dow Jones Newswires

September 06, 2016 18:31 ET (22:31 GMT)

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