For its third quarter, which ended Oct. 28, Dell reported revenues of $16.2 billion, compared with $12.7 billion in the same quarter a year ago.
Dell’s net loss for the quarter was $2.1 billion, compared with a loss of $180 million a year ago.
Revenues for the Infrastructure Solutions Group, which includes the former EMC, were $6 billion, up from $3.7 billion a year ago. Server and networking revenues for the group were $2.9 billion, down 8 percent from the same quarter last year.
Dell is profitable in a sense, with third-quarter, non-GAAP operating income of $2 billion. But the company will be dealing with debt payments for a long time. Dell reduced its debt by $5.8 billion but still carries principal debt of $56.8 billion.
Dell is “generally on track” with getting the synergies it wanted from the merger with EMC, CFO Tom Sweet said during this morning’s conference call with analysts. That includes $1 billion in near-term savings that are already starting to be realized, although it’s hard to pinpoint them on the balance sheet due to “so many unusual items” created by the EMC deal, he said.
VMware’s revenues between the close of the EMC merger to the end of Dell’s quarter — a 52-day period— were $1.3 billion, and operating income for the period was $548 million, Dell reported.
As a point of comparison, VMware’s revenues for the quarter ending Sept. 30 were $1.78 billion.
Shares of the VMware tracking stock, under the New York Stock Exchange symbol DVMT, were essentially unchanged at $53.92 today. The tracking stock is meant to represent a portion of Dell’s ownership of VMware. (Dell owns roughly 81 percent of VMware’s outstanding shares.)
As Dell noted previously, VMware shares will continue trading on Nasdaq. After VMware reports earnings for its fourth quarter, which ends in December, it will shift its fiscal year to sync up with Dell’s. That means VMware’s first quarter will be one month short, ending in February.
Earnings-call transcript provided by Seeking Alpha.