Infrastructure Sales Up

Dell’s Infrastructure support group performed better than expected with revenue leaping 12 percent year over year on sales of $9.6 billion. The company has grown ISG revenue for the last seven consecutive quarters.

Server and networking revenue comprised $5.2 billion up 14 percent, while storage revenue was higher by 11 percent to $4.4 billion, Whitten said.

“The server business, we saw slowing server growth. We had hinted at that -- not even hinted at that, stated that in Q2 and had anticipated coming into the quarter. I would say, look, it worsened over the course of the quarter vis-à-vis our Q2 earnings call,” he said. “And therefore, our server revenue growth of 14% on the P&L was aided by server backlog reduction. And we would characterize server backlog is now roughly in its normal range. Storage is a bit of a different story. It fared better. We saw growth across multiple storage categories, high-end HCI, PowerStore. I would say storage backlog remains somewhat elevated relative to historical norms, given the larger business we’re in.”