Dell beats revenue estimates on strong demand for remote working products By Reuters

© Reuters. FILE PHOTO: The logo for Dell Technologies Inc. is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 10, 2019. REUTERS/Brendan McDermid

(Reuters) – Dell Technologies (NYSE:) Inc beat Wall Street estimates for quarterly revenue on Thursday as demand for its notebooks and software products was fueled by a pandemic-led remote working environment.

Coronavirus restrictions over the past year have led to people working and studying from home, which in turn boosted sales of Dell’s cloud services and at-home hardwares.

Global shipments of PCs, the industry’s collective term for laptops and desktops, grew 55.2% during the first quarter, according to preliminary data from research firm International Data Corporation.

Dell said revenue from its client solutions group, which includes desktops, notebooks and tablets, rose 20% to $13.31 billion in the reported quarter.

The PC maker also said it had paid down $2.5 billion in debt this year and revised its debt paydown target for fiscal year 2022 to at least $16.0 billion, upon the completion of its spin-off of cloud computing software maker VMware (NYSE:) Inc.

During the quarter, Dell had announced the spin-off of its Boomi cloud business and the divestment of its major stake in VMware in order to lower its debt load.

Dell’s revenue rose 12% to $24.49 billion in the first quarter, beating estimates of $23.40 billion, according to Refinitiv IBES data.

The company’s shares have risen about 36% this year.

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