Dell misses estimates on earnings on weakness in the business network

FILE PHOTO: A Dell gaming computer is displayed on the e-3, 2017, In the Electronic Entertainment Expo in Los Angeles, California, USA, June 13, 2017. REUTERS/ Mike Blake

(Reuters) – Dell Technologies, Inc. (“DELL technical support.(N) missed Wall Street’s estimates for quarterly revenue on Tuesday, as the server business is struggling with higher costs and a decline in demand in one market will be affected by the U.S.-china trade tensions.

The revenue of the server, and the network unit dropped by 16.1% to $4.24 billion in the third quarter, ended Sept. 1, which is an 11.4% increase in sales of the software maker VMware (VMW.(N) a unit.

US technology companies with a large exposure to China, have been bearing the burden of a 16-month-long trade war, which rattled the global supply chain, to production, to fan the fears of an economic slowdown.

Earlier this month, Cisco Systems Inc (CSCO.O) forecast quarterly revenue and profits below estimates, citing the market uncertainty.

Dell had already warned that the softness in the server market, it would take place in the second half, as companies cut back on orders.

The Client Solutions Group, including desktop pcs, notebook pcs and tablet pcs, has reported a 4.6% increase in revenue, to $11.41 billion.

The Texas-based company reported total revenues of $22.84 billion in the latest quarter, narrowly missing estimates of $23.04 billion, according to IBES data, Refinitiv.

Net income was $552 million, compared with a net loss of $895 million a year earlier.

With the exception of the items, the company earned $1.75 per share, while analysts were expecting a profit of $1.62 per share.

Reporting by Neha Malara in Bengaluru; Editing by Anil D’silva

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