Round Rock-Based Dell Inc. Reports Smaller Operating Loss In First Quarter

ROUND ROCK, TX -- Dell Inc. is teetering ever closer to profitability as it reports a shrunken operating loss in the first quarter, according to published reports.

The Round Rock-based PC maker reported first-quarter revenue of $13.2 billion, according to its financial results released Friday. The total revenue was a 2 percent decline from last year's comparable period.

The company's holding company, Denali, posted preliminary financial results for the first three months ended on April 29. The company is unable to provide final results for the first quarter as it's still finalizing sales of some of its businesses to finance its acquisition of EMC, ZDNet and other media outlets reported.

The company's operating loss for the first thre months was $100 million, down from the $300 million during last year's comparable period. Dell took on a $59 billion debt load when it acquired EMC for $67 billion in October, ZDNet explains.

To help offset the cost of that acquisition, the company is selling off its IT services business, Dell Services, to Japanese telecom company NTT for roughly $3.1 billion. The transaction is expected to close in the third quarter of fiscal year 2017.

ZDNet notes Dell may also sell more than $16 billion of notes to further fund its EMC acquistion.

Read the full story at ZDNET >>