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Dell's data center business drags on fourth quarter revenue

FILE PHOTO: A logo of Dell Technologies is seen at the Mobile World Congress in Barcelona, Spain February 28, 2018. REUTERS/Yves Herman/File Photo

(Reuters) - 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 centre 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 centre business in the third quarter, saying that demand will “remain challenged”.

Revenue from the company’s infrastructure solutions group, that houses its data centre 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.

Texas-based Dell reported a net income attributable to the company of $408 million in the fourth quarter, compared with a loss of $299 million a year earlier.

The company also said it plans to buy back up to $1 billion worth of shares over the next 24 months.

Reporting by Neha Malara in Bengaluru; Editing by Shounak Dasgupta