Dell Q3's profit increased by 68%, thanks to the strong demand of two major enterprises

According to Reuters, Dell recently reported a 68% increase in quarterly operating profit, because strong demand for servers and network equipment eased weak PC sales, and easing supply chain pressure helped control costs. However, the Q4 forecast was conservative, lower than analysts' expectations.

The news said that thanks to the improvement of the supply chain, which eased the pressure brought by the increase in parts and freight, and the measures to cut expenses such as freezing external recruitment, the company's Q3 operating profit increased by 68%. The Infrastructure Solutions division, which includes servers, storage devices, and network hardware, saw revenue grow 12 percent in the third quarter to $9.6 billion. Due to weak PC demand, Q3 sales fell 6% to US $24.7 billion, but exceeded the expected US $24.54 billion.

In addition, Dell recently agreed to settle a lawsuit related to the acquisition of VMware, a software company, with 1 billion dollars, which also reduced Dell Q3's net profit.

For this quarter's forecast, Tom Sweet, Dell's chief financial officer, said that Q4 sales as of January would be as high as $24 billion, but analysts on average expected $24.9 billion. In addition, he said that because economic uncertainty has affected the information technology industry, it is difficult to predict the upcoming fiscal year.

According to Gartner's data, global PC shipments fell by more than 19% in the third quarter, the largest drop since the industry analysts began tracking the index in the mid-1990s.