Dell Technologies Reports Fiscal Year 2018 Second Quarter Financial Results
ROUND ROCK, Texas, Sept. 7, 2017 /PRNewswire/ --
News summary:
-- Second quarter revenue of $19.3 billion, non-GAAP revenue of $19.6
billion
-- Operating loss of $1.0 billion, non-GAAP operating income of $1.6
billion
-- Cash flow from operations of $1.8 billion
-- Today marks first anniversary of historic merger between Dell and EMC
Full story
Dell Technologies (NYSE: DVMT) announces its fiscal 2018 second quarter results(1). For the second quarter, consolidated revenue was $19.3 billion and non-GAAP revenue was $19.6 billion. During the quarter, the company generated an operating loss of $1.0 billion, with non-GAAP operating income of $1.6 billion. The company generated cash flow from operations of $1.8 billion.
"Today we celebrate one year since the historic combination between Dell and EMC. We've experienced great progress in bringing together our family of businesses and offering our customers and partners the most comprehensive set of solutions," said Tom Sweet, chief financial officer, Dell Technologies. "In the second quarter, we generated strong cash flow and made progress on our de-levering goal. We were pleased with the growth velocity of our client, server, hyperconverged and all-flash array offerings. We have the right strategy, portfolio and investments in place to deliver long-term growth."
Since Sept. 7, 2016, Dell Technologies has delivered significant results, including:
-- Combining two great companies, creating the essential IT infrastructure
company with more than 140,000 employees
-- Combining two salesforces into one powerful go-to-market motion and
creating an integrated channel program, both of which are driving
velocity and revenue synergies across all segments
-- Expansion of the Dell Financial Services (DFS) portfolio, now the
exclusive originator of Dell EMC business and the VMware preferred
finance partner
-- Industry leadership in newer and fast-growing categories, including
all-flash and hyperconverged infrastructure
Fiscal second quarter 2018 results
Three Months Ended Six Months Ended
------------------ ----------------
August 4, 2017 July 29, 2016 Change August 4, 2017 July 29, 2016 Change
-------------- ------------- ------ -------------- ------------- ------
(in millions, except percentages; unaudited)
Net revenue $19,299 $13,080 48 % $37,115 $25,321 47 %
Operating income (loss) $(979) $67 NM $(2,479) $(72) NM
Net loss from continuing operations $(978) $(262) (273)% $(2,361) $(686) (244)%
Non-GAAP net revenue $19,634 $13,145 49 % $37,805 $25,464 48 %
Non-GAAP operating income $1,552 $756 105 % $2,749 $1,295 112 %
Non-GAAP net income from continuing operations $873 $362 141 % $1,454 $626 132 %
Adjusted EBITDA $1,866 $884 111 % $3,433 $1,527 125 %
Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. All comparisons in this press release are year-over-year unless otherwise noted.
Operating segments summary
Client Solutions Group (Dell) continued to take share globally while growing profitably. Dell outperformed the market worldwide, experiencing 3.7 percent unit growth during the calendar quarter(2). Revenue for the second fiscal quarter was $9.9 billion, up 7 percent year over year and the highest since the same quarter of fiscal 2015. Operating income was $566 million for the quarter, a 17 percent increase or 5.7 percent of revenue.
Key highlights:
-- Increased PC shipments by 3.7 percent, with 18 consecutive quarters of
year-over-year PC unit share growth and the highest market share since
2006(2)
-- Strong notebook momentum and double-digit revenue growth across all
high-end commercial and consumer product lines
-- Ranked No. 1 workstation vendor worldwide(3)
-- No. 1 displays provider worldwide for the 16(th) consecutive quarter and
double-digit revenue growth(4)
Infrastructure Solutions Group (Dell EMC) generated $7.4 billion in revenue, up 7 percent quarter over quarter. Server and networking revenue was $3.7 billion, a quarter-over-quarter and year-over-year increase of 16 percent, and storage revenue was $3.7 billion. Operating income for the quarter was $430 million.
Key highlights:
-- Continued triple-digit demand growth for hyperconverged portfolio,
including VxRail, which has more than 2,000 customers and 14,000 nodes
deployed to date
-- Launched and shipped new 14G servers; strong overall server demand
growth in each of the major regions
-- Strong all-flash growth at scale, more than 2x the nearest competitor
-- Double-digit demand growth in next-generation Isilon scale-out NAS with
new Infinity architecture
-- Strong demand for our flexible consumption and utility models, signing
several large, multi-year strategic deals
VMware segment revenue for the second quarter was $1.9 billion, with operating income of $561 million, or 29.4 percent of revenue.
Additional financial highlights
The company ended the quarter with a cash and investments balance of $15.3 billion. In the second quarter, Dell Technologies paid down $1.0 billion of core debt. Additionally, subsequent to quarter-end, the company paid down the $1.5 billion bridge facility. Including these latest debt payments, the company has repaid approximately $9.5 billion of gross debt, excluding DFS-related debt, since closing the EMC transaction.
Also since closing the EMC transaction, the company has repurchased a total of 19.7 million shares of Class V common stock for $1.1 billion, under both the previously announced Class V Group and DHI Group repurchase programs. The company also has announced its board has approved an amendment to the Class V Group repurchase program for up to an additional $300 million of repurchases over six months. This will be funded from proceeds of sales of VMware Class A common stock under a new stock purchase agreement with VMware.
Conference call information
As previously announced, the company will hold a conference call to discuss its second quarter performance today at 7 a.m. CDT. The conference call will be broadcast live over the internet and can be accessed at investors.delltechnologies.com. For those unable to listen to the live broadcast, an archived version will be available at the same location for 30 days.
A slide presentation containing additional financial and operating information may be downloaded from Dell Technologies' website at investors.delltechnologies.com.
About Dell Technologies
Dell Technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. The company services customers of all sizes across 180 countries - ranging from 98 percent of the Fortune 500 to individual consumers - with the industry's most comprehensive and innovative portfolio from the edge to the core to the cloud.
Copyright © 2017 Dell Inc. or its subsidiaries. All Rights Reserved. Dell, Dell Inc. and the Dell logo are trademarks of Dell Technologies in the United States and/or other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective companies.
(1) Due to the EMC transaction and to a lesser extent the Dell going-private transaction, significant non-cash bridging items will remain between GAAP and non-GAAP results for the next few years. Prior-year historical Dell Technologies financials do not include EMC historical results, thereby impacting most year-over-year comparisons
(2) IDC Worldwide Quarterly Personal Computing Device (PCD) Tracker CY17Q2
(3) IDC WW Workstation Tracker CY17Q2
(4) DisplaySearch Desktop Monitor Market Tracker CY17Q1
Non-GAAP Financial Measures
This press release presents information about the Company's non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income from continuing operations, EBITDA and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each of the foregoing historical non-GAAP financial measures to the most directly comparable historical GAAP financial measures is provided in the attached tables for each of the fiscal periods indicated.
Special Note on Forward-Looking Statements:
Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.
Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products and services; Dell Technologies' foreign operations and ability to generate substantial non-U.S.net revenue; Dell Technologies' product, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; weak economic conditions and additional regulation; counterparty default risks; the loss by Dell Technologies of any services contracts with its customers, including government contracts, and its ability to perform such contracts at its estimated costs; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; infrastructure disruptions, cyberattacks, or other data security breaches; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; increased costs and additional regulations and requirements as a result of Dell Technologies operation as a public company; Dell Technologies' ability to develop and maintain effective internal control over financial reporting; compliance requirements of changing environmental and safety laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; the costs, time, and effort required to be dedicated to the integration of the Dell and EMC businesses; the ability to realize the anticipated synergies from the merger with EMC; the ability to integrate EMC's technology, solutions, products, and services with those of Dell in an effective manner; the impact of the financial performance of VMware; and the market volatility of Dell Technologies' pension plan assets.
This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect the Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the Securities and Exchange Commission, including Dell Technologies' Annual Report on Form 10-K for the fiscal year ended February 3, 2017, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the Securities and Exchange Commission's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights
(in millions, except per share amounts and percentages; unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
August 4, 2017 July 29, 2016 Change August 4, 2017 July 29, 2016 Change
-------------- ------------- ------ -------------- ------------- ------
Net revenue:
Products $14,355 $10,961 31 % $27,323 $21,144 29 %
Services 4,944 2,119 133 % 9,792 4,177 134 %
Total net revenue 19,299 13,080 48 % 37,115 25,321 47 %
------ ------ ------ ------
Cost of net revenue:
Products 12,378 9,495 30 % 23,837 18,294 30 %
Services 2,112 1,249 69 % 4,167 2,498 67 %
Total cost of net revenue 14,490 10,744 35 % 28,004 20,792 35 %
------ ------ ------ ------
Gross margin 4,809 2,336 106 % 9,111 4,529 101 %
Operating expenses:
Selling, general, and administrative 4,695 2,023 132 % 9,364 4,091 129 %
Research and development 1,093 246 344 % 2,226 510 336 %
Total operating expenses 5,788 2,269 155 % 11,590 4,601 152 %
----- ----- ------ -----
Operating income (loss) (979) 67 NM (2,479) (72) NM
Interest and other, net (545) (349) (56)% (1,118) (568) (97)%
---- ---- ------ ----
Loss from continuing operations before income taxes (1,524) (282) (440)% (3,597) (640) (462)%
Income tax provision (benefit) (546) (20) NM (1,236) 46 NM
---- --- ------ ---
Net loss from continuing operations (978) (262) (273)% (2,361) (686) (244)%
Income from discontinued operations, net of income taxes - 834 NA - 1,313 NA
Net income (loss) (978) 572 (271)% (2,361) 627 (477)%
Less: Net loss attributable to non-controlling interests (32) (1) NM (81) (1) NM
Net income (loss) attributable to Dell Technologies Inc. $(946) $573 (265)% $(2,280) $628 (463)%
===== ==== ======= ====
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
Continuing operations - Class V Common Stock - basic $0.83 $ - $1.40 $ -
Continuing operations - DHI Group - basic $(1.97) $(0.64) $(4.53) $(1.69)
Discontinued operations - DHI Group - basic $ - $2.06 $ - $3.24
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
Continuing operations - Class V Common Stock - diluted $0.82 $ - $1.38 $ -
Continuing operations - DHI Group - diluted $(1.97) $(0.64) $(4.54) $(1.69)
Discontinued operations - DHI Group - diluted $ - $2.06 $ - $3.24
Weighted-average shares outstanding:
Basic - Class V Common Stock 203 - 205 -
Diluted - Class V Common Stock 203 - 205 -
Basic - DHI Group 566 405 566 405
Diluted - DHI Group 566 405 566 405
Percentage of Total Net Revenue:
--------------------------------
Gross margin 25 % 18 % 25 % 18 %
Selling, general, and administrative 24 % 15 % 25 % 16 %
Research and development 6 % 2 % 6 % 2 %
Operating expenses 30 % 17 % 31 % 18 %
Operating income (loss) (5)% 1 % (7)% (0)%
Loss from continuing operations before income taxes (8)% (2)% (10)% (3)%
Net loss from continuing operations (5)% (2)% (6)% (3)%
Income tax rate 36 % 7 % 34 % (7)%
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Financial Position
(in millions; unaudited)
August 4, 2017 February 3, 2017
-------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $9,213 $9,474
Short-term investments 2,015 1,975
Accounts receivable, net 9,716 9,420
Short-term financing
receivables, net 3,473 3,222
Inventories, net 2,594 2,538
Other current assets 5,194 4,144
Total current assets 32,205 30,773
Property, plant, and
equipment, net 5,400 5,653
Long-term investments 4,022 3,802
Long-term financing
receivables, net 3,199 2,651
Goodwill 39,407 38,910
Intangible assets, net 31,580 35,053
Other non-current assets 1,681 1,364
Total assets $117,494 $118,206
======== ========
LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $7,686 $6,329
Accounts payable 16,916 14,422
Accrued and other 6,798 7,119
Short-term deferred revenue 10,726 10,265
Total current liabilities 42,126 38,135
Long-term debt 41,374 43,061
Long-term deferred revenue 8,878 8,431
Other non-current liabilities 7,847 9,339
----- -----
Total liabilities 100,225 98,966
------- ------
Redeemable shares 333 231
Stockholders' equity:
Total Dell Technologies Inc.
stockholders' equity 10,947 13,243
Non-controlling interests 5,989 5,766
-----
Total stockholders' equity 16,936 19,009
Total liabilities, redeemable
shares, and stockholders'
equity $117,494 $118,206
======== ========
DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
(in millions; unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
August 4, 2017 July 29, 2016 August 4, 2017 July 29, 2016
-------------- ------------- -------------- -------------
Cash flows from operating activities:
Net income (loss) $(978) $572 $(2,361) $627
Adjustments to reconcile net loss to net cash provided by operating activities 2,794 1,306 4,417 1,188
Change in cash from operating activities 1,816 1,878 2,056 1,815
----- ----- ----- -----
Cash flows from investing activities:
Investments:
Purchases (1,701) (8) (2,260) (8)
Maturities and sales 1,085 6 2,058 18
Capital expenditures (316) (143) (561) (235)
Proceeds from sale of facilities, land, and other assets - 15 - 19
Capitalized software development costs (98) - (187) -
Collections on purchased financing receivables 7 9 10 25
Acquisition of businesses, net (211) - (223) -
Divestitures of businesses, net 20 - - -
Asset acquisitions, net (86) - (86) -
Asset dispositions, net (41) - (41) -
Other - (40) - (40)
--- --- --- ---
Change in cash from investing activities (1,341) (161) (1,290) (221)
------ ---- ------ ----
Cash flows from financing activities:
Payment of dissenting shares obligation - (446) - (446)
Proceeds from the issuance of common stock of subsidiaries 72 (2) 80 100
Repurchases of DHI Group Common Stock - (2) (2) (2)
Repurchases of Class V Common Stock (54) - (422) -
Issuance of common stock under employee plans - - 1 -
Payments for debt issuance costs - (13) (5) (15)
Proceeds from debt 1,335 1,596 4,776 2,148
Repayments of debt (2,155) (1,597) (5,309) (2,638)
Repurchases for tax withholdings on vesting of equity awards (68) (1) (194) (2)
Other - 3 - 6
Change in cash from financing activities (870) (462) (1,075) (849)
---- ---- ------ ----
Effect of exchange rate changes on cash and cash equivalents 54 (21) 48 52
Change in cash and cash equivalents (341) 1,234 (261) 797
Cash and cash equivalents at beginning of the period, including amounts held for sale 9,554 6,139 9,474 6,576
Cash and cash equivalents at end of the period $9,213 $7,373 $9,213 $7,373
Less: Cash included in current assets held for sale - 147 - 147
Cash and cash equivalents from continuing operations $9,213 $7,226 $9,213 $7,226
====== ====== ====== ======
DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
August 4, 2017 July 29, 2016 Change August 4, 2017 July 29, 2016 Change
-------------- ------------- ------ -------------- ------------- ------
Client Solutions Group (CSG):
-----------------------------
Net Revenue:
Commercial $7,196 $6,798 6 % $13,546 $12,943 5 %
Consumer 2,655 2,422 10 % 5,361 4,848 11 %
Total CSG net revenue $9,851 $9,220 7 % $18,907 $17,791 6 %
------ ------ ------- -------
Operating Income:
CSG operating income $566 $484 17 % $940 $869 8 %
---- ---- ---- ----
% of CSG net revenue 6 % 5 % 5 % 5 %
% of total segment operating income 36 % 62 % 34 % 64 %
Infrastructure Solutions Group (ISG):
-------------------------------------
Net Revenue:
Servers and networking $3,740 $3,237 16 % $6,971 $6,312 10 %
Storage 3,666 542 576 % 7,351 1,080 581 %
Total ISG net revenue $7,406 $3,779 96 % $14,322 $7,392 94 %
------ ------ ------- ------
Operating Income:
ISG operating income $430 $300 43 % $753 $492 53 %
---- ---- ---- ----
% of ISG net revenue 6 % 8 % 5 % 7 %
% of total segment operating income 28 % 38 % 27 % 36 %
VMware:
-------
Net Revenue:
Total VMware net revenue $1,907 $ - NA $3,643 $ - NA
------ ----------------------- ------ -----------------------
Operating Income:
VMware operating income $561 $ - NA $1,047 $ - NA
---- ----------------------- ------ -----------------------
% of VMware net revenue 29 % NA 29 % NA
% of total segment operating income 36 % NA 38 % NA
Reconciliation to consolidated net revenue:
-------------------------------------------
Reportable segment net revenue $19,164 $12,999 $36,872 $25,183
Other businesses (a) 472 118 934 228
Unallocated transactions (b) (2) 28 (1) 53
Impact of purchase accounting (c) (335) (65) (690) (143)
Total net revenue $19,299 $13,080 $37,115 $25,321
======= ======= ======= =======
Reconciliation to consolidated operating income (loss):
-------------------------------------------------------
Reportable segment operating income $1,557 $784 $2,740 $1,361
Other businesses (a) 1 (11) 4 (27)
Unallocated transactions (b) (6) (17) 5 (39)
Impact of purchase accounting (c) (406) (98) (829) (204)
Amortization of intangibles (1,740) (491) (3,516) (982)
Transaction-related expenses (d) (138) (72) (329) (129)
Other corporate expenses(e) (247) (28) (554) (52)
Total operating income (loss) $(979) $67 $(2,479) $(72)
===== === ======= ====
_________________
(a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi, and do not constitute a reportable segment, either individually or collectively, as the results of the businesses are not material to the Company's overall results and the businesses do not meet the criteria for reportable segments.
(b) Unallocated transactions includes long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell Technologies' reportable segments.
(c) Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.
(d) Transaction-related expenses includes acquisition, integration, and divestiture related costs.
(e) Other corporate expenses includes severance and facility action costs as well as stock-based compensation expense.
SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL
MEASURES
These tables present information about the
Company's non-GAAP net revenue, non-GAAP
gross margin, non-GAAP operating expenses,
non-GAAP operating income, non-GAAP net
income from continuing operations, EBITDA,
and adjusted EBITDA, which are non-GAAP
financial measures provided as a supplement
to the results provided in accordance with
generally accepted accounting principles in
the United States of America ("GAAP"). A
detailed discussion of Dell Technologies'
reasons for including these non-GAAP
financial measures, the limitations
associated with these measures, the items
excluded from these measures, and our
reason for excluding those items are
presented in "Management's Discussion and
Analysis of Financial Condition and Results
of Operations - Non-GAAP Financial
Measures" in our periodic reports filed
with the SEC. Dell Technologies encourages
investors to review the non-GAAP
discussion in conjunction with the
presentation of non-GAAP financial
measures.
DELL TECHNOLOGIES INC.
Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
August 4, 2017 July 29, 2016 Change August 4, 2017 July 29, 2016 Change
-------------- ------------- ------ -------------- ------------- ------
Non-GAAP net revenue $19,634 $13,145 49 % $37,805 $25,464 48 %
Non-GAAP gross margin $6,100 $2,515 143 % $11,746 $4,900 140 %
% of non-GAAP net revenue 31 % 19 % 31 % 19 %
Non-GAAP operating expenses $4,548 $1,759 159 % $8,997 $3,605 150 %
% of non-GAAP net revenue 23 % 13 % 24 % 14 %
Non-GAAP operating income $1,552 $756 105 % $2,749 $1,295 112 %
% of non-GAAP net revenue 8 % 6 % 7 % 5 %
Non-GAAP net income from continuing operations $873 $362 141 % $1,454 $626 132 %
% of non-GAAP net revenue 4 % 3 % 4 % 2 %
Adjusted EBITDA $1,866 $884 111 % $3,433 $1,527 125 %
% of non-GAAP net revenue 10 % 7 % 9 % 6 %
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
August 4, 2017 July 29, 2016 Change August 4, 2017 July 29, 2016 Change
-------------- ------------- ------ -------------- ------------- ------
Net revenue $19,299 $13,080 48 % $37,115 $25,321 47 %
Non-GAAP adjustments:
Impact of purchase accounting 335 65 690 143
--- --- --- ---
Non-GAAP net revenue $19,634 $13,145 49 % $37,805 $25,464 48 %
======= ======= ======= =======
Gross margin $4,809 $2,336 106 % $9,111 $4,529 101 %
Non-GAAP adjustments:
Impact of purchase accounting 348 79 713 168
Amortization of intangibles 920 101 1,870 202
Transaction-related expenses 10 (4) 17 (5)
Other corporate expenses 13 3 35 6
--- --- --- ---
Non-GAAP gross margin $6,100 $2,515 143 % $11,746 $4,900 140 %
====== ====== ======= ======
Operating expenses $5,788 $2,269 155 % $11,590 $4,601 152 %
Non-GAAP adjustments:
Impact of purchase accounting (58) (19) (116) (36)
Amortization of intangibles (820) (390) (1,646) (780)
Transaction-related expenses (128) (76) (312) (134)
Other corporate expenses (234) (25) (519) (46)
Non-GAAP operating expenses $4,548 $1,759 159 % $8,997 $3,605 150 %
====== ====== ====== ======
Operating income (loss) $(979) $67 NM $(2,479) $(72) NM
Non-GAAP adjustments:
Impact of purchase accounting 406 98 829 204
Amortization of intangibles 1,740 491 3,516 982
Transaction-related expenses 138 72 329 129
Other corporate expenses 247 28 554 52
Non-GAAP operating income $1,552 $756 105 % $2,749 $1,295 112 %
====== ==== ====== ======
Net loss from continuing operations $(978) $(262) (273)% $(2,361) $(686) (244)%
Non-GAAP adjustments:
Impact of purchase accounting 406 98 829 204
Amortization of intangibles 1,740 491 3,516 982
Transaction-related expenses 138 69 329 126
Other corporate expenses 247 28 554 52
Aggregate adjustment for income taxes (680) (62) (1,413) (52)
Non-GAAP net income from continuing operations $873 $362 141 % $1,454 $626 132 %
==== ==== ====== ====
Net loss from continuing operations $(978) $(262) (273)% $(2,361) $(686) (244)%
Adjustments:
Interest and other, net 545 349 1,118 568
Income tax provision (benefit) (546) (20) (1,236) 46
Depreciation and amortization 2,142 605 4,354 1,223
EBITDA $1,163 $672 73 % $1,875 $1,151 63 %
====== ==== ====== ======
EBITDA $1,163 $672 73 % $1,875 $1,151 63 %
Adjustments:
Stock-based compensation expense 208 19 409 33
Impact of purchase accounting 335 75 692 158
Transaction-related expenses 138 109 329 166
Other corporate expenses 22 9 128 19
Adjusted EBITDA $1,866 $884 111 % $3,433 $1,527 125 %
====== ==== ====== ======
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SOURCE Dell Technologies
