Stock Monitor: Dell Technologies Post Earnings Reporting

LONDON, UK / ACCESSWIRE / February 06, 2018 / Active-Investors.com has just released a free research report on VMware, Inc. (NYSE: VMW). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=VMW as the Company's latest news hit the wire. On February 02, 2018, the Company issued a statement in response to the US Securities and Exchange Commission (SEC) filing by Dell Technologies Inc. (NYSE: DVMT) ("Dell") on the same day. Dell had filed a Schedule 13D with the SEC which indicated that it is considering various strategic options including taking the Company public via an IPO and merger with VMware. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, VMware and Dell Technologies most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Responding to Dell's SEC filing, Pat Gelsinger, CEO of VMware, said:

"We are not in a position to speculate on the outcome of Dell's evaluation of potential business opportunities. Dell has been a tremendous partner since it became our majority owner and as we've accelerated our growth. We look forward to Dell's continued support as we work to execute our growth plans in the years ahead."

Pat's views were supported by Paul Sagan, Lead Director - VMware Board of Directors.

Dell's SEC filing

Dell is exploring various growth options to increase revenues and encash on current available business opportunities. Dell believes that VMware has also benefited from its association with Dell and since then witnessed tremendous success, may it be in terms of delivering innovative new solutions or double-digit growth. VMware's market capitalization at present is over $50 billion and Dell wants to monetize this business opportunity. As a part of its periodic strategic plans, the Company's Board is exploring various options. Prominent amongst these options is the option of going public and listing the Company via an IPO, the option of merging with VMware and the option of continuing with the existing arrangement and organization structure without any changes. Earlier in the week, media reports had indicated that Dell could become a publicly listed Company after executing a reverse-merger with VMware.

Dell has clarified that normally such matters are highly confidential. However, since it currently owns approximately 82% of Vmware's shares, it is obliged to file the details with the SEC.

Dell has also clarified that the Company is just reviewing the pros and cons of these options and that it has not taken a final decision on any of these possibilities.

In his communication on the matter Michael S. Dell, Chairman and CEO of Dell Technologies, stated:

"Since closing on the historic combination of Dell, EMC, and VMware, it's clear that the largest merger in IT industry history has been a success.... Additionally, VMware has enjoyed tremendous success since joining the Dell Technologies family, delivering innovative new solutions and double-digit growth.... Now, as part of our ongoing multi-year strategic planning, Dell Technologies is evaluating a number of potential business opportunities."

Industry insiders speculate that Dell's decision is influenced by the massive debt of approximately $46 billion that it incurred to complete the acquisition of EMC. Dell has disclosed in its SEC filing that it has already paid off approximately $10 billion of its debts.

Backdrop

Dell Inc. completed the acquisition of EMC Corp., an IT infrastructure and network storage Company, in October 2016 in a $67 billion deal and emerged as Dell Technologies Inc. Although Dell had announced the acquisition in October 2015, the deal was completed only after receiving approval from Chinese regulators. VMware was an independent publicly Company of EMC which provided cloud computing and virtualization software and services. EMC had acquired VMware in 2004 and owned approximately 80% stake in VMware at the time of merger with Dell Inc. VMware continued to operate as an independent Company even after the Dell-EMC merger. The acquisition of majority stake in VMware as a result of the EMC deal was an added cherry on top for Dell.

About Dell Technologies Inc.

Round Rock, Texas-based Dell Technologies was formed in 2016 because of merger of Dell Inc. and EMC Corp and is the world's largest privately-controlled technology Company. The Company provides essential infrastructure for digital business and IT transformation. Customers can get the best IT solutions and services in data center through combined capabilities of Dell, EMC II, VMware, Pivotal, SecureWorks, RSA, and Virtustream, all under one Company.

About VMware, Inc.

Palo Alto, California-based VMware is a global leader in cloud infrastructure and business mobility. The Company is the pioneer in virtualization and an innovator in cloud and business mobility. It offers a trusted platform for accelerating the digital transformation of customers' workspace and allows them to run, manage, connect and secure applications across clouds and devices in a common operating environment. The Company has over 500,000 customers and 75,000 partners worldwide. The Company's revenue for FY16 was $7.09 billion.

Stock Performance Snapshot

February 05, 2018 - At Monday's closing bell, VMware's stock fell 5.15%, ending the trading session at $116.40.

Volume traded for the 3.34 million shares, which was above the 3-month average volume of 2.82 million shares.

Stock performance in the previous six-month period ? up 25.04%; and past twelve-month period ? up 30.86%

After yesterday's close, VMware's market cap was at $48.07 billion.

Price to Earnings (P/E) ratio was at 33.30.

The stock is part of the Technology sector, categorized under the Technical & System Software industry.

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