Information abstract
- Report second quarter income of $26.Four billion, up 9%, pushed by continued progress throughout consumer and infrastructure enterprise items
- Working earnings up 25% at $1.Three billion, and non-GAAP working earnings up 4% at $2 billion
- Diluted earnings per share of $0.68 and non-GAAP diluted earnings per share of $1.68
ROUND ROCK, Texas, Aug. 25, 2022 /PRNewswire/ —
Full story
Dell Applied sciences (NYSE: DELL) pronounces monetary outcomes for its fiscal 2023 second quarter. Income was a second quarter document of $26.Four billion, up 9%, pushed by progress throughout Consumer Options Group (CSG) and Infrastructure Options Group (ISG). Working earnings was $1.Three billion, up 25%, representing 4.8% of income, and non-GAAP working earnings was $2 billion, up 4%, representing 7.4% of income. Web earnings from persevering with operations was $506 million and non-GAAP internet earnings was $1.Three billion. Diluted earnings per share was $0.68, and non-GAAP diluted earnings per share was $1.68.
Second Quarter Fiscal 2023 Monetary Outcomes
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
(in tens of millions, besides per share quantities and percentages; unaudited) |
|||||||||||
|
Complete internet income |
$ 26,425 |
$ 24,191 |
9 % |
$ 52,541 |
$ 46,781 |
12 % |
|||||
|
Working earnings |
$ 1,270 |
$ 1,017 |
25 % |
$ 2,820 |
$ 2,004 |
41 % |
|||||
|
Web earnings from persevering with operations |
$ 506 |
$ 629 |
(20) % |
$ 1,575 |
$ 1,288 |
22 % |
|||||
|
Earnings per share – diluted |
$ 0.68 |
$ 0.80 |
(15) % |
$ 2.06 |
$ 1.65 |
25 % |
|||||
|
Non-GAAP internet income |
$ 26,425 |
$ 24,199 |
9 % |
$ 52,541 |
$ 46,797 |
12 % |
|||||
|
Non-GAAP working earnings |
$ 1,952 |
$ 1,868 |
4 % |
$ 4,087 |
$ 3,638 |
12 % |
|||||
|
Non-GAAP internet earnings |
$ 1,266 |
$ 1,166 |
9 % |
$ 2,700 |
$ 2,221 |
22 % |
|||||
|
Non-GAAP earnings per share – diluted |
$ 1.68 |
$ 1.48 |
14 % |
$ 3.52 |
$ 2.83 |
24 % |
|||||
Details about Dell Applied sciences’ use of non-GAAP monetary info is offered below “Non-GAAP Monetary Measures” under. All comparisons on this press launch are year-over-year until in any other case famous.
Working segments abstract
Consumer Options Group delivered second quarter document income of $15.5 billion, up 9% year-over-year. Industrial income was $12.1 billion, a 15% improve year-over-year, and Client income was $3.Three billion, down 9% year-over-year. Give attention to the business market continues to drive differentiated share outcomes, with share good points in 34 of the final 38 quarters.1 Working earnings was $1 billion, or roughly 6.3% of Consumer Options Group income.
Key areas of innovation:
- Precision 7865 Tower delivers on 25 years of business workstation innovation, supporting demanding, multi-application workloads.
- Alienware m15 R5 launches as essentially the most highly effective 17-inch AMD Benefit™ gaming laptop computer.
- New business gadgets for hybrid work can be found, together with the Latitude 9330, the world’s first laptop computer with a collaboration touchpad that lets customers mute, flip video on/off, display share and chat.
- This 12 months’s rollout of premium laptops continues with the launch of the XPS 13 and reveal of the versatile XPS 2-in-1.
Infrastructure Options Group delivered document second quarter income of $9.5 billion, up 12% and its sixth consecutive quarter of year-over-year progress. Storage income was $4.Three billion, up 6%, with progress throughout the portfolio and demand power in high-end storage and our marquee mid-range product PowerStore, which has now grown each quarter since its launch. Servers and networking income was $5.2 billion, up 16% year-over-year. Working earnings was $1 billion or roughly 11% of Infrastructure Options Group income.
Key areas of innovation:
The largest launch in PowerStore historical past and new PowerMaxOS10 software program at the moment are obtainable, delivering greater than 500 new Dell storage software program developments that assist prospects drive sooner insights, obtain higher multicloud information management and improve cyber resiliency.
- PowerProtect Cyber Restoration vault purchases grew 30% year-over-year, as prospects search a number of layers of safety from ransomware and different subtle threats.
- Dell Validated Design for Analytics – Information Lakehouse, consisting of Dell’s end-to-end ISG portfolio, gives safe entry to dependable, high quality information, so customers can run analytics, AI, ML and different data-driven workloads.
- T-Cell and Dell Applied sciences be part of forces to pair a non-public 5G community with Dell edge-computing applied sciences, so information could be processed, saved and acted upon at places like giant enterprise campuses, factories or universities.
Dell Applied sciences ended the quarter with remaining efficiency obligations of $41 billion, up 2% year-over-year, deferred income of $28 billion, and money and investments of $7.1 billion. Recurring income for the second quarter was roughly $5.2 billion, up 8% year-over-year. APEX annual recurring income is now over $1 billion, with second quarter orders progress of 78% year-over-year.
Government Quotes:
- “We continued to execute effectively in an more and more difficult surroundings with document second quarter income of $26.Four billion, up 9%,” stated Jeff Clarke, vice chairman and co-chief working officer, Dell Applied sciences. “We additionally superior our long-term technique – rising the core whereas innovating for our prospects and enabling their alternatives within the information period.”
- “We delivered sturdy CSG and ISG progress and profitability – with income up 12% and 9% respectively – though we noticed extra cautious buyer habits because the quarter progressed,” stated Chuck Whitten, co-chief working officer, Dell Applied sciences. “Prospects proceed to prioritize superior know-how options to compete and succeed within the years forward, and we’re assured in our long-term alternatives.”
- “One other quarter of document income, along with our working earnings of $1.Three billion and non-GAAP working earnings of $2 billion, affirms our business power and aggressive place,” stated Tom Candy, chief monetary officer, Dell Applied sciences. “We stay targeted on what we will management, staying versatile and opportunistic, and delivering income and EPS progress with sturdy free money stream to our shareholders over time.”
Convention name info
As beforehand introduced, the Firm will maintain a convention name to debate its efficiency and monetary steering on Aug. 25, 2022, at 4:30 p.m. CDT. Previous to the beginning of the convention name, ready remarks and a presentation containing extra monetary and working info previous to steering could also be downloaded from buyers.delltechnologies.com. The convention name can be broadcast stay over the web could be accessed at
https://buyers.delltechnologies.com/events-and-presentations/upcoming-events
For these unable to take heed to the stay broadcast, the ultimate remarks and presentation with steering can be obtainable following the printed, and an archived model can be obtainable on the identical location for one 12 months.
Buyer Highlights Weblog
Learn our quarterly weblog from Invoice Scannell, Dell Applied sciences president of International Gross sales & Buyer Operations, to be taught extra about how we’re serving to prospects with their digital transformations:
https://www.dell.com/en-us/weblog/technology-investments-are-key-to-customers-competitive-advantage/
Environmental, Social and Governance (ESG)
Our Environmental, Social and Governance (ESG) efforts give attention to driving constructive affect for individuals and our planet whereas delivering long-term worth for our stakeholders. The FY22 ESG report was printed June 30, 2022, and the Firm held a convention name to debate on July 21. ESG assets could be accessed at
https://www.dell.com/en-us/dt/company/social-impact/reporting/esg-governance.htm
About Dell Applied sciences
Dell Applied sciences (NYSE:DELL) helps organizations and people construct their digital future and rework how they work, stay and play. The corporate gives prospects with the business’s broadest and most modern know-how and providers portfolio for the info period.
Copyright © 2022 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Applied sciences, Dell, EMC and Dell EMC are emblems of Dell Inc. or its subsidiaries. Different emblems could also be emblems of their respective house owners.
Non-GAAP Monetary Measures:
This press launch presents details about Dell Applied sciences’ non-GAAP internet income, non-GAAP gross margin, non-GAAP working bills, non-GAAP working earnings, non-GAAP internet earnings, non-GAAP internet earnings attributable to non-controlling pursuits, non-GAAP internet earnings attributable to Dell Applied sciences Inc. – fundamental, non-GAAP internet earnings attributable to Dell Applied sciences Inc. – diluted, non-GAAP earnings per share attributable to Dell Applied sciences Inc. – fundamental, and non-GAAP earnings per share attributable to Dell Applied sciences Inc. – diluted, that are non-GAAP monetary measures offered as a complement to the outcomes offered in accordance with typically accepted accounting rules in america of America (“GAAP”). A reconciliation of every non-GAAP monetary measure to essentially the most immediately comparable GAAP monetary measure is offered within the connected tables for every of the fiscal intervals indicated.
Particular Observe on Ahead-Trying Statements:
Statements on this press launch that relate to future outcomes and occasions are forward-looking statements inside the that means of Part 21E of the Securities Trade Act of 1934 and Part 27A of the Securities Act of 1933 and are primarily based on Dell Applied sciences’ present expectations. In some circumstances, you possibly can establish these statements by such forward-looking phrases as “anticipate,” “imagine,” “confidence,” “may,” “estimate,” “count on,” “steering,” “intend,” “could,” “goal,” “outlook,” “plan,” “mission,” “doable,” “potential,” “ought to,” “will” and “would,” or comparable phrases or expressions that discuss with future occasions or outcomes.
Dell Applied sciences’ outcomes or occasions in future intervals may differ materially from these expressed or implied by these forward-looking statements due to dangers, uncertainties, and different components that embrace, however will not be restricted to, the next: dangers and uncertainties regarding our spin-off of VMware, Inc., together with the potential results on our enterprise of the transaction; the results of the COVID-19 pandemic; aggressive pressures; Dell Applied sciences’ reliance on third-party suppliers for merchandise and parts, together with reliance on single-source or limited-source suppliers; Dell Applied sciences’ potential to realize favorable pricing from its distributors; opposed world financial situations and instability in monetary markets; Dell Applied sciences’ execution of its progress, enterprise and acquisition methods; the success of Dell Applied sciences’ price effectivity measures; Dell Applied sciences’ potential to handle options and services and products transitions in an efficient method; Dell Applied sciences’ potential to ship high-quality merchandise, software program, and providers; cyber assaults or different information safety incidents; Dell Applied sciences’ international operations and talent to generate substantial non-U.S. internet income; Dell Applied sciences’ product, providers, buyer, and geographic gross sales combine, and seasonal gross sales tendencies; the efficiency of Dell Applied sciences’ gross sales channel companions; entry to the capital markets by Dell Applied sciences or its prospects; materials impairment of the worth of goodwill or intangible property; weak financial situations and the impact of extra regulation on Dell Applied sciences’ monetary providers actions; counterparty default dangers; the loss by Dell Applied sciences of any contracts for ISG providers and options and its potential to carry out such contracts at their estimated prices; loss by Dell Applied sciences of presidency contracts; Dell Applied sciences’ potential to develop and defend its proprietary mental property or receive licenses to mental property developed by others on commercially cheap and aggressive phrases; disruptions in Dell Applied sciences’ infrastructure; Dell Applied sciences’ potential to hedge successfully its publicity to fluctuations in international foreign money change charges and rates of interest; expiration of tax holidays or favorable tax fee buildings, or unfavorable outcomes in tax audits and different tax compliance issues; impairment of portfolio investments; unfavorable outcomes of authorized proceedings; compliance necessities of adjusting environmental and security legal guidelines or different legal guidelines; the impact of armed hostilities, terrorism, pure disasters, and public well being points; the impact of world local weather change and authorized, regulatory, or market measures to handle local weather change; Dell Applied sciences’ dependence on the providers of Michael Dell and key workers; Dell Applied sciences’ degree of indebtedness; the impact of the transition from LIBOR as a reference fee to calculate rates of interest below our variable-rate indebtedness; and enterprise and monetary components and authorized restrictions affecting continuation of Dell Applied sciences’ quarterly money dividend coverage and dividend fee.
This listing of dangers, uncertainties, and different components will not be full. Dell Applied sciences discusses a few of these issues extra totally, in addition to sure threat components that might have an effect on Dell Applied sciences’ enterprise, monetary situation, outcomes of operations, and prospects, in its studies filed with the SEC, together with Dell Applied sciences’ annual report on Type 10-Ok for the fiscal 12 months ended January 28, 2022, quarterly studies on Type 10-Q, and present studies on Type 8-Ok. These filings can be found for assessment via the SEC’s web site at www.sec.gov. All or any forward-looking statements Dell Applied sciences makes could turn into mistaken and could be affected by inaccurate assumptions Dell Applied sciences may make or by recognized or unknown dangers, uncertainties and different components, together with these recognized on this press launch. Accordingly, you shouldn’t place undue reliance on the forward-looking statements made on this press launch, which communicate solely as of its date. Dell Applied sciences doesn’t undertake to replace, and expressly disclaims any responsibility to replace, its forward-looking statements, whether or not on account of circumstances or occasions that come up after the date they’re made, new info, or in any other case.
1 Primarily based on items, as of Q2 CY2022 IDC information. Information between Q1 CY2013 and Q2 CY2022.
DELL TECHNOLOGIES INC. FINANCIAL INFORMATION
Foundation of Presentation
Spin-Off of VMware, Inc. — On November 1, 2021, Dell Applied sciences Inc. accomplished its spin-off of VMware, Inc. (“VMware”) by the use of a particular inventory dividend (the “VMware Spin-off”). In accordance with relevant accounting steering, the outcomes of VMware, excluding Dell’s resale of VMware choices, are introduced as discontinued operations within the Condensed Consolidated Statements of Earnings and, as such, have been excluded from each persevering with operations and phase outcomes for the three and 6 months ended July 30, 2021. The Condensed Consolidated Statements of Money Flows are introduced on a consolidated foundation for each persevering with operations and discontinued operations.
|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Consolidated Statements of Earnings and Associated Monetary Highlights |
|||||||||||
|
(in tens of millions, besides percentages; unaudited) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
Web income: |
|||||||||||
|
Merchandise |
$ 20,810 |
$ 18,895 |
10 % |
$ 41,274 |
$ 36,382 |
13 % |
|||||
|
Companies |
5,615 |
5,296 |
6 % |
11,267 |
10,399 |
8 % |
|||||
|
Complete internet income |
26,425 |
24,191 |
9 % |
52,541 |
46,781 |
12 % |
|||||
|
Value of internet income: |
|||||||||||
|
Merchandise |
17,671 |
15,692 |
13 % |
34,680 |
30,126 |
15 % |
|||||
|
Companies |
3,315 |
3,024 |
10 % |
6,638 |
5,916 |
12 % |
|||||
|
Complete price of internet income |
20,986 |
18,716 |
12 % |
41,318 |
36,042 |
15 % |
|||||
|
Gross margin |
5,439 |
5,475 |
(1) % |
11,223 |
10,739 |
5 % |
|||||
|
Working bills: |
|||||||||||
|
Promoting, normal, and administrative |
3,543 |
3,761 |
(6) % |
7,096 |
7,419 |
(4) % |
|||||
|
Analysis and improvement |
626 |
697 |
(10) % |
1,307 |
1,316 |
(1) % |
|||||
|
Complete working bills |
4,169 |
4,458 |
(6) % |
8,403 |
8,735 |
(4) % |
|||||
|
Working earnings |
1,270 |
1,017 |
25 % |
2,820 |
2,004 |
41 % |
|||||
|
Curiosity and different, internet |
(635) |
(292) |
(117) % |
(972) |
(580) |
(68) % |
|||||
|
Earnings earlier than earnings taxes |
635 |
725 |
(12) % |
1,848 |
1,424 |
30 % |
|||||
|
Earnings tax expense |
129 |
96 |
34 % |
273 |
136 |
101 % |
|||||
|
Web earnings from persevering with operations |
506 |
629 |
(20) % |
1,575 |
1,288 |
22 % |
|||||
|
Earnings from discontinued operations, internet of earnings taxes |
— |
251 |
(100) % |
— |
530 |
(100) % |
|||||
|
Web earnings |
506 |
880 |
(43) % |
1,575 |
1,818 |
(13) % |
|||||
|
Much less: Web loss attributable to non-controlling pursuits |
(5) |
(2) |
(150) % |
(8) |
(3) |
(167) % |
|||||
|
Much less: Web earnings attributable to non-controlling pursuits of discontinued operations |
— |
51 |
(100) % |
— |
103 |
(100) % |
|||||
|
Web earnings attributable to Dell Applied sciences Inc. |
$ 511 |
$ 831 |
(39) % |
$ 1,583 |
$ 1,718 |
(8) % |
|||||
|
Share of Complete Web Income: |
|||||||||||
|
Gross margin |
20.6 % |
22.6 % |
21.4 % |
23.0 % |
|||||||
|
Promoting, normal, and administrative |
13.4 % |
15.5 % |
13.5 % |
15.9 % |
|||||||
|
Analysis and improvement |
2.4 % |
2.9 % |
2.5 % |
2.8 % |
|||||||
|
Working bills |
15.8 % |
18.4 % |
16.0 % |
18.7 % |
|||||||
|
Working earnings |
4.8 % |
4.2 % |
5.4 % |
4.3 % |
|||||||
|
Earnings earlier than earnings taxes |
2.4 % |
3.0 % |
3.5 % |
3.0 % |
|||||||
|
Web earnings from persevering with operations |
1.9 % |
2.6 % |
3.0 % |
2.8 % |
|||||||
|
Earnings tax fee |
20.3 % |
13.2 % |
14.8 % |
9.6 % |
|||||||
|
Quantities are primarily based on underlying information and should not visually foot as a result of rounding. |
|||||||||||
|
DELL TECHNOLOGIES INC. |
|||
|
Consolidated Statements of Monetary Place |
|||
|
(in tens of millions; unaudited) |
|||
|
July 29, 2022 |
January 28, 2022 |
||
|
ASSETS |
|||
|
Present property: |
|||
|
Money and money equivalents |
$ 5,507 |
$ 9,477 |
|
|
Accounts receivable, internet |
13,431 |
12,912 |
|
|
Due from associated get together, internet |
195 |
131 |
|
|
Brief-term financing receivables, internet |
4,860 |
5,089 |
|
|
Inventories |
5,883 |
5,898 |
|
|
Different present property |
12,386 |
11,526 |
|
|
Complete present property |
42,262 |
45,033 |
|
|
Property, plant, and gear, internet |
5,772 |
5,415 |
|
|
Lengthy-term investments |
1,520 |
1,839 |
|
|
Lengthy-term financing receivables, internet |
5,450 |
5,522 |
|
|
Goodwill |
19,505 |
19,770 |
|
|
Intangible property, internet |
6,972 |
7,461 |
|
|
Due from associated get together, internet |
609 |
710 |
|
|
Different non-current property |
6,685 |
6,985 |
|
|
Complete property |
$ 88,775 |
$ 92,735 |
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||
|
Present liabilities: |
|||
|
Brief-term debt |
$ 6,647 |
$ 5,823 |
|
|
Accounts payable |
25,339 |
27,143 |
|
|
Because of associated get together |
1,269 |
1,414 |
|
|
Accrued and different |
6,810 |
7,578 |
|
|
Brief-term deferred income |
14,724 |
14,261 |
|
|
Complete present liabilities |
54,789 |
56,219 |
|
|
Lengthy-term debt |
20,287 |
21,131 |
|
|
Lengthy-term deferred income |
13,301 |
13,312 |
|
|
Different non-current liabilities |
3,153 |
3,653 |
|
|
Complete liabilities |
91,530 |
94,315 |
|
|
Stockholders’ fairness (deficit): |
|||
|
Complete Dell Applied sciences Inc. stockholders’ fairness (deficit) |
(2,860) |
(1,685) |
|
|
Non-controlling pursuits |
105 |
105 |
|
|
Complete stockholders’ fairness (deficit) |
(2,755) |
(1,580) |
|
|
Complete liabilities and stockholders’ fairness |
$ 88,775 |
$ 92,735 |
|
|
DELL TECHNOLOGIES INC. |
|||||||
|
Consolidated Statements of Money Flows |
|||||||
|
(in tens of millions; unaudited) |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
July 29, 2022 |
July 30, 2021 |
July 29, 2022 |
July 30, 2021 |
||||
|
Money flows from working actions: |
|||||||
|
Web earnings |
$ 506 |
$ 880 |
$ 1,575 |
$ 1,818 |
|||
|
Changes to reconcile internet earnings to internet money offered by working actions: |
218 |
845 |
(1,120) |
2,145 |
|||
|
Change in money from working actions |
724 |
1,725 |
455 |
3,963 |
|||
|
Money flows from investing actions: |
|||||||
|
Purchases of investments |
(28) |
(124) |
(80) |
(270) |
|||
|
Maturities and gross sales of investments |
50 |
79 |
68 |
335 |
|||
|
Capital expenditures and capitalized software program improvement prices |
(807) |
(632) |
(1,497) |
(1,257) |
|||
|
Acquisition of companies and property, internet |
— |
(6) |
— |
(16) |
|||
|
Different |
7 |
14 |
11 |
20 |
|||
|
Change in money from investing actions |
(778) |
(669) |
(1,498) |
(1,188) |
|||
|
Money flows from financing actions: |
|||||||
|
Proceeds from the issuance of widespread inventory |
1 |
26 |
5 |
186 |
|||
|
Repurchases of mum or dad widespread inventory (a) |
(689) |
(8) |
(2,468) |
(17) |
|||
|
Repurchases of subsidiary widespread inventory (a) |
(1) |
(544) |
(8) |
(978) |
|||
|
Funds of dividends to stockholders |
(242) |
— |
(490) |
— |
|||
|
Proceeds from debt |
3,431 |
1,209 |
6,465 |
3,935 |
|||
|
Repayments of debt |
(3,539) |
(4,353) |
(6,242) |
(8,423) |
|||
|
Debt-related prices and different, internet |
(7) |
(3) |
(14) |
(14) |
|||
|
Change in money from financing actions |
(1,046) |
(3,673) |
(2,752) |
(5,311) |
|||
|
Impact of change fee modifications on money, money equivalents, and restricted money |
(83) |
(16) |
(194) |
(21) |
|||
|
Change in money, money equivalents, and restricted money |
(1,183) |
(2,633) |
(3,989) |
(2,557) |
|||
|
Money, money equivalents, and restricted money at starting of the interval, together with money attributable to discontinued operations |
7,276 |
15,260 |
10,082 |
15,184 |
|||
|
Money, money equivalents, and restricted money at finish of the interval, together with money attributable to discontinued operations |
6,093 |
12,627 |
6,093 |
12,627 |
|||
|
Much less: Money, money equivalents, and restricted money attributable to discontinued operations |
— |
5,922 |
— |
5,922 |
|||
|
Money, money equivalents, and restricted money from persevering with operations |
$ 6,093 |
$ 6,705 |
$ 6,093 |
$ 6,705 |
|||
_________________
|
(a) |
Widespread inventory repurchases are inclusive of worker tax withholding on stock-based compensation. |
|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Phase Info |
|||||||||||
|
(in tens of millions, besides percentages; unaudited; continued on subsequent web page) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
Infrastructure Options Group (ISG): |
|||||||||||
|
Web income: |
|||||||||||
|
Servers and networking |
$ 5,209 |
$ 4,480 |
16 % |
$ 10,257 |
$ 8,620 |
19 % |
|||||
|
Storage |
4,327 |
4,070 |
6 % |
8,564 |
7,963 |
8 % |
|||||
|
Complete ISG internet income |
$ 9,536 |
$ 8,550 |
12 % |
$ 18,821 |
$ 16,583 |
13 % |
|||||
|
Working Earnings: |
|||||||||||
|
ISG working earnings |
$ 1,046 |
$ 962 |
9 % |
$ 2,128 |
$ 1,740 |
22 % |
|||||
|
% of ISG internet income |
11.0 % |
11.3 % |
11.3 % |
10.5 % |
|||||||
|
% of complete reportable phase working earnings |
52 % |
49 % |
50 % |
46 % |
|||||||
|
Consumer Options Group (CSG): |
|||||||||||
|
Web income: |
|||||||||||
|
Industrial |
$ 12,141 |
$ 10,577 |
15 % |
$ 24,112 |
$ 20,385 |
18 % |
|||||
|
Client |
3,349 |
3,691 |
(9) % |
6,965 |
7,194 |
(3) % |
|||||
|
Complete CSG internet income |
$ 15,490 |
$ 14,268 |
9 % |
$ 31,077 |
$ 27,579 |
13 % |
|||||
|
Working Earnings: |
|||||||||||
|
CSG working earnings |
$ 978 |
$ 986 |
(1) % |
$ 2,093 |
$ 2,066 |
1 % |
|||||
|
% of CSG internet income |
6.3 % |
6.9 % |
6.7 % |
7.5 % |
|||||||
|
% of complete reportable phase working earnings |
48 % |
51 % |
50 % |
54 % |
|||||||
|
Quantities are primarily based on underlying information and should not visually foot as a result of rounding. |
|||||||||||
|
DELL TECHNOLOGIES INC. |
|||||||
|
Phase Info |
|||||||
|
(in tens of millions, besides percentages; unaudited; continued) |
|||||||
|
Three Months Ended |
Six Months Ended |
||||||
|
July 29, 2022 |
July 30, 2021 |
July 29, 2022 |
July 30, 2021 |
||||
|
Reconciliation to consolidated internet income: |
|||||||
|
Reportable phase internet income |
$ 25,026 |
$ 22,818 |
$ 49,898 |
$ 44,162 |
|||
|
Different companies (a) |
1,399 |
1,378 |
2,638 |
2,630 |
|||
|
Unallocated transactions (b) |
— |
3 |
5 |
5 |
|||
|
Influence of buy accounting (c) |
— |
(8) |
— |
(16) |
|||
|
Complete consolidated internet income |
$ 26,425 |
$ 24,191 |
$ 52,541 |
$ 46,781 |
|||
|
Reconciliation to consolidated working earnings: |
|||||||
|
Reportable phase working earnings |
$ 2,024 |
$ 1,948 |
$ 4,221 |
$ 3,806 |
|||
|
Different companies (a) |
(71) |
(77) |
(135) |
(167) |
|||
|
Unallocated transactions (b) |
(1) |
(3) |
1 |
(1) |
|||
|
Influence of buy accounting (c) |
(3) |
(15) |
(12) |
(35) |
|||
|
Amortization of intangibles |
(244) |
(442) |
(487) |
(887) |
|||
|
Transaction-related bills (d) |
(3) |
(37) |
(8) |
(66) |
|||
|
Inventory-based compensation expense (e) |
(236) |
(206) |
(468) |
(378) |
|||
|
Different company bills (f) |
(196) |
(151) |
(292) |
(268) |
|||
|
Complete consolidated working earnings |
$ 1,270 |
$ 1,017 |
$ 2,820 |
$ 2,004 |
|||
_________________
|
(a) |
Different companies consists of: 1) Dell’s resale of standalone VMware, Inc. services and products, “VMware Resale,” 2) Secureworks, and three) Virtustream, and don’t meet the necessities for a reportable phase, both individually or collectively. |
|
(b) |
Unallocated transactions contains different company gadgets that aren’t allotted to Dell Applied sciences’ reportable segments. |
|
(c) |
Influence of buy accounting contains non-cash buy accounting changes which might be primarily associated to the EMC merger transaction. |
|
(d) |
Transaction-related bills contains acquisition, integration, and divestiture associated prices. |
|
(e) |
Inventory-based compensation expense consists of fairness awards granted primarily based on the estimated honest worth of these awards at grant date. |
|
(f) |
Different company bills contains impairment costs, incentive costs associated to fairness investments, severance, payroll taxes related to stock-based compensation, services motion, and different prices. Through the three and 6 months ended Fiscal 2023, different company bills contains impairment and different prices incurred in reference to exiting our enterprise in Russia. |
SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
These tables current details about the Firm’s non-GAAP internet income, non-GAAP gross margin, non-GAAP working bills, non-GAAP working earnings, non-GAAP internet earnings, non-GAAP internet earnings attributable to Dell Applied sciences Inc. – fundamental and diluted, non-GAAP earnings per share attributable to Dell Applied sciences Inc. – fundamental, and non-GAAP earnings per share attributable to Dell Applied sciences Inc. – diluted that are non-GAAP monetary measures offered as a complement to the outcomes offered in accordance with typically accepted accounting rules in america of America (“GAAP”). An in depth dialogue of Dell Applied sciences’ causes for together with these non-GAAP monetary measures, the constraints related to these measures, the gadgets excluded from these measures, and our cause for excluding these gadgets are introduced in “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations — Non-GAAP Monetary Measures” in our periodic studies filed with the SEC. Dell Applied sciences encourages buyers to assessment the non-GAAP dialogue in these studies along side the presentation of non-GAAP monetary measures.
|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Chosen Non-GAAP Monetary Measures |
|||||||||||
|
(in tens of millions, besides per share quantities and percentages; unaudited) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
Non-GAAP internet income |
$ 26,425 |
$ 24,199 |
9 % |
$ 52,541 |
$ 46,797 |
12 % |
|||||
|
Non-GAAP gross margin |
$ 5,650 |
$ 5,673 |
— % |
$ 11,591 |
$ 11,137 |
4 % |
|||||
|
% of non-GAAP internet income |
21.4 % |
23.4 % |
22.1 % |
23.8 % |
|||||||
|
Non-GAAP working bills |
$ 3,698 |
$ 3,805 |
(3) % |
$ 7,504 |
$ 7,499 |
— % |
|||||
|
% of non-GAAP internet income |
14.0 % |
15.7 % |
14.3 % |
16.0 % |
|||||||
|
Non-GAAP working earnings |
$ 1,952 |
$ 1,868 |
4 % |
$ 4,087 |
$ 3,638 |
12 % |
|||||
|
% of non-GAAP internet income |
7.4 % |
7.7 % |
7.8 % |
7.8 % |
|||||||
|
Non-GAAP internet earnings |
$ 1,266 |
$ 1,166 |
9 % |
$ 2,700 |
$ 2,221 |
22 % |
|||||
|
% of non-GAAP internet income |
4.8 % |
4.8 % |
5.1 % |
4.7 % |
|||||||
|
Non-GAAP earnings per share – diluted |
$ 1.68 |
$ 1.48 |
14 % |
$ 3.52 |
$ 2.83 |
24 % |
|||||
|
Quantities are primarily based on underlying information and should not visually foot as a result of rounding. |
|||||||||||
|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Reconciliation of Chosen Non-GAAP Monetary Measures |
|||||||||||
|
(in tens of millions, besides percentages; unaudited; continued on subsequent web page) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
Web income |
$ 26,425 |
$ 24,191 |
9 % |
$ 52,541 |
$ 46,781 |
12 % |
|||||
|
Non-GAAP changes: |
|||||||||||
|
Influence of buy accounting |
— |
8 |
— |
16 |
|||||||
|
Non-GAAP internet income |
$ 26,425 |
$ 24,199 |
9 % |
$ 52,541 |
$ 46,797 |
12 % |
|||||
|
Gross margin |
$ 5,439 |
$ 5,475 |
(1) % |
$ 11,223 |
$ 10,739 |
5 % |
|||||
|
Non-GAAP changes: |
|||||||||||
|
Amortization of intangibles |
105 |
150 |
209 |
300 |
|||||||
|
Influence of buy accounting |
— |
9 |
2 |
18 |
|||||||
|
Inventory-based compensation expense |
37 |
32 |
75 |
60 |
|||||||
|
Different company bills |
69 |
7 |
82 |
20 |
|||||||
|
Non-GAAP gross margin |
$ 5,650 |
$ 5,673 |
— % |
$ 11,591 |
$ 11,137 |
4 % |
|||||
|
Working bills |
$ 4,169 |
$ 4,458 |
(6) % |
$ 8,403 |
$ 8,735 |
(4) % |
|||||
|
Non-GAAP changes: |
|||||||||||
|
Amortization of intangibles |
(139) |
(292) |
(278) |
(587) |
|||||||
|
Influence of buy accounting |
(3) |
(6) |
(10) |
(17) |
|||||||
|
Transaction-related bills |
(3) |
(37) |
(8) |
(66) |
|||||||
|
Inventory-based compensation expense |
(199) |
(174) |
(393) |
(318) |
|||||||
|
Different company bills |
(127) |
(144) |
(210) |
(248) |
|||||||
|
Non-GAAP working bills |
$ 3,698 |
$ 3,805 |
(3) % |
$ 7,504 |
$ 7,499 |
— % |
|||||
|
Working earnings |
$ 1,270 |
$ 1,017 |
25 % |
$ 2,820 |
$ 2,004 |
41 % |
|||||
|
Non-GAAP changes: |
|||||||||||
|
Amortization of intangibles |
244 |
442 |
487 |
887 |
|||||||
|
Influence of buy accounting |
3 |
15 |
12 |
35 |
|||||||
|
Transaction-related bills |
3 |
37 |
8 |
66 |
|||||||
|
Inventory-based compensation expense |
236 |
206 |
468 |
378 |
|||||||
|
Different company bills |
196 |
151 |
292 |
268 |
|||||||
|
Non-GAAP working earnings |
$ 1,952 |
$ 1,868 |
4 % |
$ 4,087 |
$ 3,638 |
12 % |
|||||
|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Reconciliation of Chosen Non-GAAP Monetary Measures |
|||||||||||
|
(in tens of millions, besides percentages; unaudited; continued) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
Web earnings from persevering with operations |
$ 506 |
$ 629 |
(20) % |
$ 1,575 |
$ 1,288 |
22 % |
|||||
|
Non-GAAP changes: |
|||||||||||
|
Amortization of intangibles |
244 |
442 |
487 |
887 |
|||||||
|
Influence of buy accounting |
3 |
15 |
12 |
35 |
|||||||
|
Transaction-related (earnings) bills |
(4) |
25 |
(6) |
54 |
|||||||
|
Inventory-based compensation expense |
236 |
206 |
468 |
378 |
|||||||
|
Different company bills |
212 |
151 |
308 |
268 |
|||||||
|
Honest worth changes on fairness investments |
255 |
(168) |
241 |
(362) |
|||||||
|
Combination adjustment for earnings taxes |
(186) |
(134) |
(385) |
(327) |
|||||||
|
Non-GAAP internet earnings |
$ 1,266 |
$ 1,166 |
9 % |
$ 2,700 |
$ 2,221 |
22 % |
|||||
|
Web earnings from persevering with operations attributable to Dell Applied sciences Inc. |
$ 511 |
$ 631 |
(19) % |
$ 1,583 |
$ 1,291 |
23 % |
|||||
|
Non-GAAP changes: |
|||||||||||
|
Amortization of intangibles |
244 |
442 |
487 |
887 |
|||||||
|
Influence of buy accounting |
3 |
15 |
12 |
35 |
|||||||
|
Transaction-related (earnings) bills |
(4) |
25 |
(6) |
54 |
|||||||
|
Inventory-based compensation expense |
236 |
206 |
468 |
378 |
|||||||
|
Different company bills |
212 |
151 |
308 |
268 |
|||||||
|
Honest worth changes on fairness investments |
255 |
(168) |
241 |
(362) |
|||||||
|
Combination adjustment for earnings taxes |
(186) |
(134) |
(385) |
(327) |
|||||||
|
Complete non-GAAP changes attributable to non-controlling pursuits |
(3) |
(2) |
(5) |
(3) |
|||||||
|
Non-GAAP internet earnings attributable to Dell Applied sciences Inc. |
$ 1,268 |
$ 1,166 |
9 % |
$ 2,703 |
$ 2,221 |
22 % |
|||||
|
DELL TECHNOLOGIES INC. |
|||||||||||
|
Reconciliation of Chosen Non-GAAP Monetary Measures |
|||||||||||
|
(in tens of millions, besides percentages and per share quantities; unaudited; continued) |
|||||||||||
|
Three Months Ended |
Six Months Ended |
||||||||||
|
July 29, 2022 |
July 30, 2021 |
Change |
July 29, 2022 |
July 30, 2021 |
Change |
||||||
|
Earnings per share from persevering with operations attributable to Dell Applied sciences Inc. |
|||||||||||
|
Web earnings from persevering with operations attributable to Dell Applied sciences Inc. — fundamental |
$ 511 |
$ 631 |
$ 1,583 |
$ 1,291 |
|||||||
|
Weighted-average shares excellent — fundamental |
739 |
763 |
746 |
760 |
|||||||
|
Earnings per share attributable to Dell Applied sciences Inc. — fundamental |
$ 0.69 |
$ 0.83 |
(17) % |
$ 2.12 |
$ 1.70 |
25 % |
|||||
|
Web earnings from persevering with operations attributable to Dell Applied sciences Inc. — diluted |
$ 511 |
$ 631 |
$ 1,583 |
$ 1,291 |
|||||||
|
Weighted-average shares excellent — diluted |
755 |
786 |
768 |
784 |
|||||||
|
Earnings per share attributable to Dell Applied sciences Inc. — diluted: |
$ 0.68 |
$ 0.80 |
(15) % |
$ 2.06 |
$ 1.65 |
25 % |
|||||
|
Earnings per share from discontinued operations attributable to Dell Applied sciences Inc. |
|||||||||||
|
Web earnings from discontinued operations attributable to Dell Applied sciences Inc. — fundamental |
$ — |
$ 200 |
$ — |
$ 427 |
|||||||
|
Weighted-average shares excellent — fundamental |
— |
763 |
— |
760 |
|||||||
|
Earnings per share attributable to Dell Applied sciences Inc. — fundamental |
$ — |
$ 0.26 |
NM |
$ — |
$ 0.56 |
NM |
|||||
|
Incremental dilution from VMware, Inc. attributable to Dell Applied sciences |
— |
(3) |
— |
(5) |
|||||||
|
Web earnings from discontinued operations attributable to Dell Applied sciences Inc. — diluted |
$ — |
$ 197 |
$ — |
$ 422 |
|||||||
|
Weighted-average shares excellent — diluted |
— |
786 |
— |
784 |
|||||||
|
Earnings per share attributable to Dell Applied sciences Inc. — diluted |
$ — |
$ 0.25 |
NM |
$ — |
$ 0.53 |
NM |
|||||
|
Non-GAAP earnings per share attributable to Dell Applied sciences Inc. |
|||||||||||
|
Non-GAAP internet earnings attributable to Dell Applied sciences Inc. — fundamental |
$ 1,268 |
$ 1,166 |
$ 2,703 |
$ 2,221 |
|||||||
|
Weighted-average shares excellent — fundamental |
739 |
763 |
746 |
760 |
|||||||
|
Earnings per share attributable to Dell Applied sciences Inc. — fundamental |
$ 1.72 |
$ 1.53 |
12 % |
$ 3.62 |
$ 2.92 |
24 % |
|||||
|
Non-GAAP internet earnings attributable to Dell Applied sciences Inc. — diluted |
$ 1,268 |
$ 1,166 |
$ 2,703 |
$ 2,221 |
|||||||
|
Weighted-average shares excellent — diluted |
755 |
786 |
768 |
784 |
|||||||
|
Earnings per share attributable to Dell Applied sciences Inc. — diluted |
$ 1.68 |
$ 1.48 |
14 % |
$ 3.52 |
$ 2.83 |
24 % |
|||||
|
Quantities could not visually recalculate as a result of rounding. |
|||||||||||
SOURCE Dell Applied sciences
