DELL TECHNOLOGIES ROUND ROCK, Texas, March 30, 2017 /PRNewswire/ --
News summary
-- Fourth quarter revenue of $20.1 billion, with full-year revenue of $61.6
billion
-- Non-GAAP fourth quarter revenue of $20.6 billion, with non-GAAP annual
revenue of $62.8 billion
-- Fourth quarter operating loss of $1.7 billion, with non-GAAP operating
income of $1.8 billion
-- Fiscal 2017 accomplishments include completion of industry's largest
merger transaction, combined award-winning solutions portfolio,
completed announced divestitures and reduced debt
Full story
Dell Technologies (NYSE: DVMT) announces its fiscal 2017 fourth quarter and full year results, which reflect the growth and impact of the EMC transaction.
For the fourth quarter, consolidated revenue from continuing operations was $20.1 billion and non-GAAP revenue from continuing operations was $20.6 billion. During the quarter, the company generated an operating loss of $1.7 billion, with a non-GAAP operating income of $1.8 billion.
For the full year, consolidated revenue from continuing operations was $61.6 billion and non-GAAP revenue from continuing operations was $62.8 billion. The company generated an operating loss of $3.3 billion, with a non-GAAP operating income of $5.1 billion.
Due to the EMC transaction as well as 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 any year-over-year comparisons.
"I'm pleased with our overall fiscal 2017 performance, with growth in our client business and positive momentum from investments we're making in our infrastructure business," said Tom Sweet, chief financial officer, Dell Technologies Inc. "In our fiscal year 2018, we'll drive that momentum forward, beginning with our new sales go-to-market capabilities, and continue to target identified revenue and cost synergies while investing in our broad portfolio of solutions."
The company ended the year with a cash and investments balance of $15.3 billion, an increase of $287 million from the third quarter.
Since closing the EMC transaction, Dell Technologies has paid down approximately $7 billion in debt and repurchased $824 million of Class V Common Stock under the previously announced Class V Common Stock repurchase programs.
Today the company also announced the board has approved an amendment to its existing Class V Group Repurchase Program for up to an additional $300 million over six months. The amount will be funded solely through a new VMware Class A Stock Purchase Agreement with VMware.
Fiscal year 2017 fourth quarter and full year results
Three Months Ended Fiscal Year Ended
------------------ -----------------
February 3, 2017 January 29, 2016 Change February 3, 2017 January 29, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
(in millions, except percentages, unaudited)
Net revenue $20,074 $12,679 58 % $61,642 $50,911 21 %
Operating loss $(1,668) $(26) NM $(3,252) $(514) (533)%
Net loss from continuing operations $(1,414) $(168) (742)% $(3,737) $(1,168) (220)%
Non-GAAP net revenue $20,581 $12,768 61 % $62,822 $51,370 22 %
Non-GAAP operating income $1,843 $655 181 % $5,113 $2,225 130 %
Non-GAAP net income from continuing operations $1,091 $382 186 % $2,687 $1,053 155 %
Adjusted EBITDA $2,184 $753 190 % $5,941 $2,633 126 %
Dell Technologies' fiscal year 2017 included an additional week, which is incorporated into the company's fourth quarter results.
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 continued to outgrow the market worldwide for units in both commercial and consumer product categories on a calendar year basis. Revenue for the fiscal fourth quarter was $9.8 billion, up 11 percent versus the fourth quarter of last year, and revenue for the full year was $36.8 billion, up 2 percent year over fiscal year 2016. Operating income was $342 million for the quarter, and $1.8 billion for the full year.
Key calendar fourth quarter highlights include:
-- PC shipments of 11 million, representing the largest volume of products
shipped since the fourth quarter of 2011 (1)
-- 8.2 percent year-over-year PC shipment increase, the best among the top
seven PC vendors, with 16 consecutive quarters of year-over-year PC unit
share growth and 150 basis points of unit share gained for the calendar
year (1)
-- No. 1 share position worldwide for displays, gaining unit share
year-over-year for the 16(th) consecutive quarter (2)
Infrastructure Solutions Group generated $8.4 billion of revenue in the fourth quarter, which includes $3.6 billion in servers and networking and $4.8 billion in storage, and an operating income of $1 billion.
Key calendar fourth quarter highlights:
-- Regained the No. 1 worldwide server unit share position driven by
strength in the mainstream PowerEdge business (3)
-- No. 1 market share position in all-flash arrays(4), which exited 2016 at
a more than $4 billion demand run rate
-- The industry's fastest growing hyperconverged infrastructure vendor
during the calendar fourth quarter with more than 300 percent demand
growth
VMware revenue for the fourth quarter was $1.9 billion, with operating income of $565 million, or 29.2 percent of revenue.
Conference call information
As previously announced, the company will hold a conference call to discuss its fourth quarter and full-year 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.
Dell Technologies Investor Meeting
Dell Technologies will host a meeting for investors April 5, 2017, at 1:30 p.m. EDT in New York. The meeting will feature discussions from Chief Financial Officer Tom Sweet, Infrastructure Solutions Group President David Goulden, and Treasurer Tyler Johnson with a focus on the company's strategy, integration efforts and capital structure. Due to limited seating, onsite attendance is by invitation only. A live webcast and replay of the meeting will be available on the event page of Dell Technologies Investor Relations website at investors.delltechnologies.com.
Dell EMC World
Join us May 8-11, 2017 at Dell EMC World in Las Vegas, Dell Technologies' flagship event, bringing together technology and business professionals to network, share ideas and help co-create a better future. This is the first time the Dell Technologies family of brands will be all in one place, at one conference. Meet our experts and more than 12,000 IT practitioners and business leaders who are making Digital Transformation a reality. Learn more at www.dellemcworld.com and follow #DellEMCWorld on Twitter.
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 EMC, 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) IDC Worldwide Quarterly Personal Computing Device (PCD) Tracker CY16Q4
(2) IDC Worldwide Quarterly PC Monitor Tracker CY16Q4
(3) IDC Worldwide Quarterly Server Tracker, March 2017
(4) IDC Worldwide Quarterly Enterprise Storage Systems Tracker, March 2017
Non-GAAP Financial Measures
The 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 becoming a newly 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 filings with the Securities and Exchange Commission, including Dell Technologies' annual report on Form 10-K, which we expect to file on March 31, 2017, 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.
Special Note on the Divestitures:
On March 27, 2016, Dell entered into a definitive agreement with NTT Data International L.L.C. to sell substantially all of Dell Services for cash consideration of approximately $3.0 billion. On June 19, 2016, Dell entered into a definitive agreement with Francisco Partners and Elliot Management Corporation to sell substantially all of Dell Software Group for cash consideration of approximately $2.4 billion. On Sept. 12, 2016, EMC Corporation entered into a definitive agreement with OpenText to divest the Dell EMC Enterprise Content Division, or ECD, for cash consideration of approximately $1.6 billion. Accordingly, the results of operations of Dell Services, Dell Software Group and ECD have been excluded from the results of continuing operations and from segment results. On October 31, 2016, Dell completed the sale of Dell Software Group. On November 2, 2016, Dell completed substantially all of the sale of Dell Services. The remainder of the Dell Services transaction closed subsequent to the fiscal year ended February 3, 2017. On January 23, 2017, Dell Technologies completed the sale of ECD.
DELL TECHNOLOGIES INC.
Consolidated Statements of Income (Loss) and Related Financial Highlights
(in millions, except per share amounts and percentages; unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
February 3, 2017 January 29, 2016 Change February 3, 2017 January 29, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Net revenue:
Products $15,196 $10,642 43 % $48,706 $42,742 14 %
Services 4,878 2,037 139 % 12,936 8,169 58 %
Total net revenue 20,074 12,679 58 % 61,642 50,911 21 %
------ ------ ------ ------
Cost of net revenue:
Products 13,313 9,208 45 % 42,169 37,563 12 %
Services 2,230 1,217 83 % 6,514 4,961 31 %
Total cost of net revenue 15,543 10,425 49 % 48,683 42,524 14 %
------ ------ ------ ------
Gross margin 4,531 2,254 101 % 12,959 8,387 55 %
Operating expenses:
Selling, general, and administrative 4,928 2,001 146 % 13,575 7,850 73 %
Research and development 1,271 279 356 % 2,636 1,051 151 %
Total operating expenses 6,199 2,280 172 % 16,211 8,901 82 %
----- ----- ------ -----
Operating loss (1,668) (26) NM (3,252) (514) (533)%
Interest and other, net (742) (172) (331)% (2,104) (772) (173)%
---- ---- ------ ----
Loss from continuing operations before income taxes (2,410) (198) NM (5,356) (1,286) (316)%
Income tax benefit (996) (30) NM (1,619) (118) NM
---- --- ------ ----
Net loss from continuing operations (1,414) (168) (742)% (3,737) (1,168) (220)%
Income from discontinued operations, net of income taxes 1,144 13 NM 2,019 64 NM
Net loss (270) (155) (74)% (1,718) (1,104) (56)%
Less: Net loss attributable to non-controlling interests (34) - NA (46) - NA
Net loss attributable to Dell Technologies Inc. $(236) $(155) (52)% $(1,672) $(1,104) (51)%
===== ===== ======= =======
Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
Continuing operations - Class V Common Stock - basic $0.64 $ - $1.44 $ -
Continuing operations - DHI Group - basic $(2.68) $(0.41) $(8.52) $(2.88)
Discontinued operations - DHI Group - basic $2.02 $0.03 $4.30 $0.16
Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
Continuing operations - Class V Common Stock - diluted $0.64 $ - $1.43 $ -
Continuing operations - DHI Group - diluted $(2.68) $(0.41) $(8.52) $(2.88)
Discontinued operations - DHI Group - diluted $2.02 $0.03 $4.30 $0.16
Weighted-average shares outstanding:
Basic - Class V Common Stock 215 - 217 -
Diluted - Class V Common Stock 215 - 217 -
Basic - DHI Group 566 405 470 405
Diluted - DHI Group 566 405 470 405
Percentage of Total Net Revenue:
--------------------------------
Gross margin 23 % 18 % 21 % 16 %
Selling, general, and administrative 25 % 16 % 22 % 15 %
Research and development 6 % 2 % 4 % 2 %
Operating expenses 31 % 18 % 26 % 17 %
Operating loss (8)% (0)% (5)% (1)%
Loss from continuing operations before income taxes (12)% (2)% (9)% (3)%
Net loss from continuing operations (7)% (1)% (6)% (2)%
Income tax rate 41 % 15 % 30 % 9 %
DELL TECHNOLOGIES INC.
Consolidated Statements of Financial Position
(in millions; unaudited)
February 3, 2017 January 29, 2016
---------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $9,474 $6,322
Short-term investments 1,975 -
Accounts receivable, net 9,420 4,887
Short-term financing
receivables, net 3,222 2,915
Inventories, net 2,538 1,619
Other current assets 4,144 3,497
Current assets held for sale - 4,333
Total current assets 30,773 23,573
Property, plant, and
equipment, net 5,653 1,649
Long-term investments 3,802 114
Long-term financing
receivables, net 2,651 2,177
Goodwill 38,910 8,406
Intangible assets, net 35,053 8,577
Other non-current assets 1,364 626
Total assets $118,206 $45,122
======== =======
LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt $6,329 $2,981
Accounts payable 14,422 12,881
Accrued and other 7,119 4,217
Short-term deferred revenue 10,265 3,632
Current liabilities held for
sale - 1,599
--- -----
Total current liabilities 38,135 25,310
Long-term debt 43,061 10,650
Long-term deferred revenue 8,431 4,089
Other non-current liabilities 9,339 3,501
----- -----
Total liabilities 98,966 43,550
------ ------
Redeemable shares 231 106
Stockholders' equity:
Total Dell Technologies Inc.
stockholders' equity 13,243 1,466
Non-controlling interests 5,766 -
-----
Total stockholders' equity 19,009 1,466
Total liabilities, redeemable
shares, and stockholders'
equity $118,206 $45,122
======== =======
DELL TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(in millions; unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
February 3, 2017 January 29, 2016 February 3, 2017 January 29, 2016
---------------- ---------------- ---------------- ----------------
Cash flows from operating activities:
Net loss $(270) $(155) $(1,718) $(1,104)
Adjustments to reconcile net loss to net cash provided by operating activities 946 1,126 3,940 3,266
Change in cash from operating activities 676 971 2,222 2,162
--- --- ----- -----
Cash flows from investing activities:
Investments:
Purchases (267) (1) (778) (27)
Maturities and sales 612 6 1,173 7
Capital expenditures (282) (142) (699) (482)
Proceeds from sale of facilities, land, and other assets - - 24 88
Capitalized software development costs (122) - (207) -
Collections on purchased financing receivables 4 14 35 85
Acquisition of businesses, net of cash acquired (15) - (37,629) -
Divestitures of businesses, net of cash transferred 6,873 - 6,873 8
Other - - (48) -
--- --- --- ---
Change in cash from investing activities 6,803 (123) (31,256) (321)
----- ---- ------- ----
Cash flows from financing activities:
Payment of dissenting shares obligation - - (446) -
Proceeds from the issuance of DHI Group Common Stock 18 - 4,422 -
Proceeds from the issuance of common stock of subsidiaries 63 - 164 -
Repurchases of DHI Group Common Stock - - (10) -
Repurchases of Class V Common Stock (569) - (701) -
Repurchases of VMware Class A Common Stock - - (611) -
Issuance of common stock under employee plans - - - 2
Payments for debt issuance costs (4) - (853) (10)
Proceeds from debt 907 567 46,893 5,460
Repayments of debt (7,322) (742) (16,960) (5,950)
Other 5 - 10 2
Change in cash from financing activities (6,902) (175) 31,908 (496)
------ ---- ------ ----
Effect of exchange rate changes on cash and cash equivalents (7) (79) 24 (167)
Change in cash and cash equivalents 570 594 2,898 1,178
Cash and cash equivalents at beginning of the period, including amounts held for sale 8,904 5,982 6,576 5,398
Cash and cash equivalents at end of the period $9,474 $6,576 $9,474 $6,576
Less: Cash included in current assets held for sale - 254 - 254
Cash and cash equivalents from continuing operations $9,474 $6,322 $9,474 $6,322
====== ====== ====== ======
DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
February 3, 2017 January 29, 2016 Change February 3, 2017 January 29, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Client Solutions Group (CSG):
-----------------------------
Net Revenue:
Commercial $6,663 $5,969 12 % $26,006 $25,747 1 %
Consumer 3,113 2,868 9 % 10,748 10,130 6 %
Total CSG net revenue $9,776 $8,837 11 % $36,754 $35,877 2 %
------ ------ ------- -------
Operating Income:
CSG operating income $342 $484 (29)% $1,845 $1,410 31 %
---- ---- ------ ------
% of CSG net revenue 3 % 5 % 5 % 4 %
% of total segment operating income 18 % 64 % 34 % 57 %
Infrastructure Solutions Group (ISG):
-------------------------------------
Net Revenue:
Servers and networking $3,612 $3,234 12 % $12,834 $12,761 1 %
Storage 4,783 562 751 % 8,942 2,217 303 %
Total ISG net revenue $8,395 $3,796 121 % $21,776 $14,978 45 %
------ ------ ------- -------
Operating Income:
ISG operating income $1,004 $276 264 % $2,393 $1,052 127 %
------ ---- ------ ------
% of ISG net revenue 12 % 7 % 11 % 7 %
% of total segment operating income 53 % 36 % 45 % 43 %
VMware:
-------
Net Revenue:
Total VMware net revenue $1,936 $ - NA $3,225 $ - NA
------ --------------------------- ------ ---------------------------
Operating Income:
VMware operating income $565 $ - NA $1,113 $ - NA
---- --------------------------- ------ ---------------------------
% of VMware net revenue 29 % NA 35 % NA
% of total segment operating income 30 % NA 21 % NA
Reconciliation to consolidated net revenue:
-------------------------------------------
Reportable segment net revenue $20,107 $12,633 $61,755 $50,855
Other businesses (a) 480 107 1,026 382
Unallocated transactions (b) (6) 28 41 133
Impact of purchase accounting (c) (507) (89) (1,180) (459)
Total net revenue $20,074 $12,679 $61,642 $50,911
======= ======= ======= =======
Reconciliation to consolidated operating income (loss):
-------------------------------------------------------
Reportable segment operating income $1,911 $760 $5,351 $2,462
Other businesses (a) (3) (16) (39) (78)
Unallocated transactions (b) (65) (89) (199) (159)
Impact of purchase accounting (c) (1,240) (129) (2,294) (604)
Amortization of intangibles (1,535) (491) (3,681) (1,969)
Transaction-related expenses (d) (159) (42) (1,488) (109)
Other corporate expenses(e) (577) (19) (902) (57)
Total operating loss $(1,668) $(26) $(3,252) $(514)
======= ==== ======= =====
_________________
(a) Other businesses consist of RSA Information Security, SecureWorks, Pivotal, and Boomi offerings, 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, as well as the going-private transaction.
(d) Transaction-related expenses includes acquisition and integration-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 Fiscal Year Ended
------------------ -----------------
February 3, 2017 January 29, 2016 Change February 3, 2017 January 29, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Non-GAAP net revenue $20,581 $12,768 61 % $62,822 $51,370 22 %
Non-GAAP gross margin $6,595 $2,458 168 % $16,819 $9,307 81 %
% of non-GAAP net revenue 32 % 19 % 27 % 18 %
Non-GAAP operating expenses $4,752 $1,803 164 % $11,706 $7,082 65 %
% of non-GAAP net revenue 23 % 14 % 19 % 14 %
Non-GAAP operating income $1,843 $655 181 % $5,113 $2,225 130 %
% of non-GAAP net revenue 9 % 5 % 8 % 4 %
Non-GAAP net income from continuing operations $1,091 $382 186 % $2,687 $1,053 155 %
% of non-GAAP net revenue 5 % 3 % 4 % 2 %
Adjusted EBITDA $2,184 $753 190 % $5,941 $2,633 126 %
% of non-GAAP net revenue 11 % 6 % 9 % 5 %
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited)
Three Months Ended Fiscal Year Ended
------------------ -----------------
February 3, 2017 January 29, 2016 Change February 3, 2017 January 29, 2016 Change
---------------- ---------------- ------ ---------------- ---------------- ------
Net revenue $20,074 $12,679 58 % $61,642 $50,911 21 %
Non-GAAP adjustments:
Impact of purchase accounting 507 89 1,180 459
---
Non-GAAP net revenue $20,581 $12,768 61 % $62,822 $51,370 22 %
======= ======= ======= =======
Gross margin $4,531 $2,254 101 % $12,959 $8,387 55 %
Non-GAAP adjustments:
Impact of purchase accounting 1,110 104 2,007 512
Amortization of intangibles 847 97 1,653 392
Transaction-related expenses 18 - 43 6
Other corporate expenses 89 3 157 10
---
Non-GAAP gross margin $6,595 $2,458 168 % $16,819 $9,307 81 %
====== ====== ======= ======
Operating expenses $6,199 $2,280 172 % $16,211 $8,901 82 %
Non-GAAP adjustments:
Impact of purchase accounting (130) (25) (287) (92)
Amortization of intangibles (688) (394) (2,028) (1,577)
Transaction-related expenses (141) (42) (1,445) (103)
Other corporate expenses (488) (16) (745) (47)
Non-GAAP operating expenses $4,752 $1,803 164 % $11,706 $7,082 65 %
====== ====== ======= ======
Operating loss $(1,668) $(26) NM $(3,252) $(514) (533)%
Non-GAAP adjustments:
Impact of purchase accounting 1,240 129 2,294 604
Amortization of intangibles 1,535 491 3,681 1,969
Transaction-related expenses 159 42 1,488 109
Other corporate expenses 577 19 902 57
Non-GAAP operating income $1,843 $655 181 % $5,113 $2,225 130 %
====== ==== ====== ======
Net loss from continuing operations $(1,414) $(168) (742)% $(3,737) $(1,168) (220)%
Non-GAAP adjustments:
Impact of purchase accounting 1,240 129 2,294 604
Amortization of intangibles 1,535 491 3,681 1,969
Transaction-related expenses 159 42 1,485 83
Other corporate expenses 577 19 902 77
Aggregate adjustment for income taxes (1,006) (131) (1,938) (512)
Non-GAAP net income from continuing operations $1,091 $382 186 % $2,687 $1,053 155 %
====== ==== ====== ======
Net loss from continuing operations $(1,414) $(168) (742)% $(3,737) $(1,168) (220)%
Adjustments:
Interest and other, net 742 172 2,104 772
Income tax benefit (996) (30) (1,619) (118)
Depreciation and amortization 2,041 623 4,840 2,494
EBITDA $373 $597 (38)% $1,588 $1,980 (20)%
==== ==== ====== ======
EBITDA $373 $597 (38)% $1,588 $1,980 (20)%
Adjustments:
Stock-based compensation expense 215 17 392 63
Impact of purchase accounting 1,075 95 1,926 487
Transaction-related expenses 159 42 1,525 83
Other corporate expenses 362 2 510 20
Adjusted EBITDA $2,184 $753 190 % $5,941 $2,633 126 %
====== ==== ====== ======
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/dell-technologies-reports-fiscal-year-2017-fourth-quarter-and-full-year-financial-results-300431802.html
SOURCE Dell Technologies
