Summary
Dell Technologies Inc. reported a net income of $329 million for the three months ended May 3, 2019, a significant improvement from a net loss of $538 million in the same period last year. Total net revenue also increased by 3% year-over-year to $21.9 billion, driven by growth in the Client Solutions Group (CSG) and VMware segments. The Infrastructure Solutions Group (ISG) experienced a slight revenue decline, but operating income improved. The company continues to manage its substantial debt load, having recently completed refinancing activities to smooth out maturity profiles. Key financial highlights include a substantial increase in operating income due to reduced amortization and purchase accounting adjustments, alongside growth in non-GAAP operating income. Dell Technologies also generated $682 million in cash from operating activities. The company's strategic focus remains on delivering integrated IT solutions and maintaining financial discipline, including debt reduction efforts, to drive long-term profitable growth.
Financial Highlights
53 data points| Revenue | $21.91B |
| Cost of Revenue | $15.11B |
| Gross Profit | $6.80B |
| R&D Expenses | $1.18B |
| SG&A Expenses | $5.07B |
| Operating Expenses | $6.25B |
| Operating Income | $550.00M |
| Net Income | $293.00M |
| EPS (Basic) | $0.41 |
| EPS (Diluted) | $0.38 |
| Shares Outstanding (Basic) | 717.00M |
| Shares Outstanding (Diluted) | 751.00M |
Key Highlights
- 1Net income turned positive, reaching $329 million compared to a net loss of $538 million in the prior year's quarter.
- 2Total net revenue grew 3% year-over-year to $21.9 billion, driven by strong performance in Client Solutions Group (CSG) and VMware.
- 3Operating income significantly improved to $550 million from a loss of $153 million in the prior year, largely due to decreased amortization and purchase accounting adjustments.
- 4Cash flow from operating activities was $682 million, a decrease from $1.16 billion in the prior year period, primarily due to higher seasonal personnel payments.
- 5The company reported $40.0 billion in goodwill and $20.9 billion in intangible assets, net, as of May 3, 2019.
- 6Total debt remained substantial at $53.5 billion (carrying value) as of May 3, 2019, with ongoing efforts to manage maturities and costs.
- 7VMware's net revenue grew 13% year-over-year, contributing significantly to the overall company performance, with an operating income of $614 million.