PC maker Dell Technologies Inc (DELL.N) reported its slowest quarterly revenue growth since its return to the public market, hurt by weakness in its data center business and said it plans to buy back up to $1 billion worth of shares.
The company which returned to the market after a six-year hiatus in December 2018, said on Thursday its revenue grew nearly 1% to $24.03 billion (18.64 billion pounds), largely in line with estimates of $24 billion, according to IBES data from Refinitiv.
Dell had flagged concerns of weakness in its data center business in the third quarter, saying that demand will “remain challenged”.
Revenue from the company’s infrastructure solutions group, which houses its data center business, fell more than 11% to $8.76 billion in the fourth quarter ended Jan. 31, missing estimates of $9.61 billion.
Earlier in December, Dell said slower demand in China, caused by trade restrictions, will continue to impact its results into fiscal 2021.
Client solutions group, which includes desktop PCs, notebooks and tablets, reported an 8% rise in revenue to $11.77 billion while sales in its unit VMware (VMW.N) rose about 12% to $3.13 billion.
The company also said it plans to buy back up to $1 billion worth of shares over the next 24 months.