Dell Technologies Reports Fiscal Year 2018 Second Quarter Financial Results

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September 7, 2017 7:00 AM EDT

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

 

Dell Technologies

Full story

Dell Technologies (NYSE: DVMT) announces its fiscal 2018 second quarter results1. 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 quarter2. 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 20062
  • Strong notebook momentum and double-digit revenue growth across all high-end commercial and consumer product lines
  • Ranked No. 1 workstation vendor worldwide3
  • No. 1 displays provider worldwide for the 16th consecutive quarter and double-digit revenue growth4

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 comparisons2 IDC Worldwide Quarterly Personal Computing Device (PCD) Tracker CY17Q23 IDC WW Workstation Tracker CY17Q24 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


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