Dell Technologies reported mixed results for its third quarter fiscal 2020. The tech giant’s adjusted earnings hit $1.75 per share on non-GAPP revenue of $22.9 billion. This beat analysts’ expected earnings of $1.62 per share. But it missed on Q3 revenue, which analysts forecast to reach $23.04 billion.
Meanwhile Bloomberg reported earlier today that Dell Technologies is considering selling RSA Security for at least $1 billion. Company executives did not comment on the rumored sale during a conference call with investors today, and a spokesperson declined to comment on the report.
Dell acquired the cybersecurity business in 2016 when it merged with EMC.
Dell Q3 FinancialsDell also reported declining sales from its server and networking business unit during the third quarter. Its Infrastructure Solutions Group revenue dropped 6% year over year in Q3 to $8.4 billion. Storage revenue was $4.1 billion, up 7 percent year over year while servers and networking decreased 16 percent to $4.2 billion.
On a call with investors, company executives blamed this continuing server slowdown to weaker-than-expected enterprise sales and the trade war with China. These tensions have also hit other infrastructure vendors, hitting Cisco and Hewlett Packard Enterprise’s quarterly earnings as well.
Dell Technologies executives also warned that Intel’s chip shortage will likely hurt server sales in the current quarter. “Intel CPU shortages have worsened quarter over quarter,” Vice Chairman Jeffrey Clarke said.
This prompted Dell to cuts its revenue forecast for the full year to a range of $91.8 billion to $92.5 billion, down from its earlier range of $93 billion to $94 billion.