Dell Technologies Inc. (DELL) on Thursday reported a 16% drop in first-quarter profit, but the results were better than expected as the company benefited from cost cuts and strong demand for its cloud computing and data center products.
The Round Rock, Texas-based company reported net income of $1.24 billion, or 92 cents per share, for the quarter ended April 30. That compares with $1.48 billion, or 108 cents per share, in the same period a year ago.
Excluding one-time items, Dell earned 99 cents per share. Analysts on average were expecting earnings of 93 cents per share, according to FactSet.
Revenue for the quarter fell 7% to $24.5 billion, but that was also better than expected. Analysts were expecting revenue of $24.3 billion.
Dell said the decline in revenue was due to a decline in its personal computer business, which was offset by growth in its cloud computing and data center businesses.
The company's cost-cutting measures helped to offset the decline in revenue. Dell said it has reduced its workforce by 10,000 employees since the beginning of the year.
Dell also said it is on track to achieve its full-year guidance. The company expects revenue of $91.5 billion to $93.5 billion for the year, and earnings per share of $4.45 to $4.65.
Shares of Dell were up 3.5% in extended trading.