Dive Brief:
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Though Dell does not report its earnings as a private company, its parent company Denali Holding reported the tech company had a first quarter operating loss of $161 million.
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Dell had $12.5 billion in revenue, which is 2% lower than the same period last year.
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Both Dell's PC and enterprise units saw lower sales in the first quarter.
Dive Insight:
Dell's enterprise unit reported first quarter sales of $3.6 billion, down 2% from a year ago. Dell’s PC unit revenue dropped 3% from 2015 to $8.6 billion. The software division's revenue was flat.
The lower PC sales did not come as a surprise, as PC sales have been down across the board. Last week, International Data Corporation (IDC) predicted PC shipments will fall even lower than previously expected this year. The PC industry has now seen an unprecedented four consecutive quarters of lower sales, according to IDC.
Dell has also been raising some cash in asset sales, however. In March, Dell agreed to sell its IT services subsidiary, Dell Services, to NTT Data for $3.06 billion.
Dell will take on an estimated $49.5 billion in debt to finance its record-breaking $67 billion acquisition of EMC, which is expected to be finalized before the end of the year.
