Strong Storage, VMware & PC Performance Power Dell Technologies' Third Quarter Results.

 
FREE EXCERPT

ROUND ROCK, Texas:

News summary

Storage revenue up 7%; Client Solutions Group revenue up 5%

VMware revenue up 11%

Operating income of $836 million; non-GAAP operating income of $2.4 billion

Cash flow from operations of $1.8 billion

Diluted earnings per share of $0.66; non-GAAP diluted earnings per share of $1.75

Full story

Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2020 third quarter. Third quarter revenue was $22.8 billion, up 2 percent, and non-GAAP revenue was $22.9 billion, up 1 percent over the same period last year. Operating income was $836 million1 compared to an operating loss of $356 million last year, and non-GAAP operating income was up 18 percent to $2.4 billion. Net income was $552 million or 2.4 percent of revenue, non-GAAP net income was $1.4 billion or 6.3 percent of non-GAAP revenue, and adjusted EBITDA was $2.9 billion or 12.5 percent of non-GAAP revenue. Cash flow from operations was $1.8 billion. Diluted earnings per share was $0.66 and non-GAAP diluted earnings per share was $1.75.

"Dell Technologies is innovating and integrating solutions across our entire portfolio to create the technology infrastructure of the future for our customers," said Jeff Clarke, vice chairman, Dell Technologies. "Our highly differentiated set of offerings enables us to continue to win in a consolidating industry, while also driving long-term value for all stakeholders."

Third Quarter Fiscal 2020 Financial Results

Three Months Ended

Nine Months Ended

November 1,

2019

November 2,

2018

Change

November 1,

2019

November 2,

2018

Change

(in millions, except percentages; unaudited)

Total net revenue

$

22,844

$

22,482

2%

$

68,122

$

66,780

2%

Operating income (loss)

$

836

$

(356)

335%

$

1,905

$

(522)

465%

Net income (loss)

$

552

$

(895)

162%

$

5,113

$

(1,894)

370%

Non-GAAP net revenue

$

22,928

$

22,651

1%

$

68,372

$

67,316

2%

Non-GAAP operating income

$

2,442

$

2,064

18%

$

7,381

$

6,198

19%

Non-GAAP net income

$

1,445

$

1,197

21%

$

4,405

$

3,635

21%

Adjusted EBITDA

$

2,857

$

2,426

18%

$

8,586

$

7,268

18%

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.

Dell Technologies ended the quarter with a cash and investments balance of $9.4 billion. The company repaid approximately $1.1 billion of gross debt in the quarter and approximately $3.5 billion year-to-date. The...

To continue reading

REQUEST YOUR TRIAL