Dell Technologies Delivers Record Third Quarter Fiscal 2022 Results

November 23, 2021

Nov. 23, 2021 —

News summary

  • Best third quarter in Dell Technologies history, driven by robust demand, durable competitive advantages and strong execution
  • Record third quarter revenue of $28.4 billion, up 21%
  • Third quarter diluted earnings per share of $4.87, non-GAAP diluted earnings per share of $2.37

Full story

Dell Technologies announces record financial results for its fiscal 2022 third quarter. The company generated record revenue of $28.4 billion, up 21%, driven by growth in all business units, customer segments and geographies, as well as broad strength across commercial PCs, servers and storage. Operating income was a third quarter record of $1.3 billion, a 19% increase over the same period the prior year, and non-GAAP operating income was a third quarter record of $2.9 billion, up 5%. Net income was $3.9 billion, non-GAAP net income was $2.0 billion and adjusted EBITDA was $3.4 billion. Net cash from operating activities was $3.3 billion. Diluted earnings per share was $4.87, up 351% and non-GAAP diluted earnings per share was $2.37, up 17%.

Third Quarter Fiscal 2022 Financial Results

Three Months Ended

Nine Months Ended

October 29,
2021

October 30,
2020

Change

October 29,
2021

October 30,
2020

Change

(in millions, except per share amounts and percentages; unaudited)

Total net revenue

$

28,394

$

23,482

21%

$

79,003

$

68,112

16%

Operating income

$

1,349

$

1,129

19%

$

4,096

$

2,967

38%

Net income

$

3,888

$

881

341%

$

5,706

$

2,162

164%

Earnings per share – diluted

$

4.87

$

1.08

351%

$

7.08

$

2.64

168%

Non-GAAP net revenue

$

28,405

$

23,521

21%

$

79,037

$

68,241

16%

Non-GAAP operating income

$

2,868

$

2,725

5%

$

8,393

$

7,504

12%

Non-GAAP net income

$

2,015

$

1,711

18%

$

5,745

$

4,475

28%

Adjusted EBITDA

$

3,410

$

3,231

6%

$

9,976

$

8,938

12%

Non-GAAP earnings per share – diluted

$

2.37

$

2.03

17%

$

6.75

$

5.28

28%

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 remaining performance obligations of $47 billion, up 26%, deferred revenue of $31 billion, and cash and investments of $24.2 billion. The company has paid down a total of $15.9 billion of debt year-to-date and received an Investment Grade corporate family rating from all three of the major credit rating agencies.

Operating Segments Summary

Client Solutions Group revenue for the third quarter was up 35% to a record $16.5 billion. Operating income was a third quarter record of $1.1 billion, up 14%, and 6.9% of Client Solutions Group revenue. Commercial revenue was a record $12.3 billion, up an unprecedented 40%, and consumer revenue was also a record $4.3 billion, up 21%.

Key highlights:

  • Continued growth in high-value segments, including commercial PCs, high-end consumer and gaming – which will drive long-term profitable share gains.
  • Achieved highest year-over-year PC share gain in Dell’s history for calendar third quarter, with shipments up 26.6% and global PC share up 3.0 points to 17.4%.1
  • Announced new Latitude Rugged notebooks – including the industry’s smallest 5G-capable 13″ fully-rugged laptop.
  • Timed to the 25th anniversary of Alienware – released the redesigned Alienware Aurora, the pinnacle of gaming desktop experiences. With a special focus on airflow and thermals, the open-air design provides better accessibility and improved performance – enriching the gaming experience in every possible way.

Infrastructure Solutions Group revenue for the third quarter was $8.4 billion, up 5% and the third consecutive quarter of positive year-over-year revenue growth, as customers accelerate IT investments. Storage revenue was $3.9 billion, up 1%. Servers and networking revenue was $4.5 billion, up 9% for a fourth consecutive quarter of year-over-year growth. Operating income was $892 million or approximately 10.6% of Infrastructure Solutions Group revenue. Customer investments in IT infrastructure and digital transformation will continue to drive strong demand for compute and storage and create future growth opportunities for new innovations in multi-cloud, telecom and 5G.

Key highlights:

  • Introduced updates to the network-attached storage (NAS) portfolio, including new Dell EMC PowerScale systems and software enhancements, all focused on providing customers with the flexible and secure consumption and management of unstructured data.
  • Launched the industry’s first end-to-end NVMe/TCP solution, featuring SmartFabric Storage Software, which provides the intelligence for automated storage connectivity at scale.
  • Announced edge innovations across the portfolio to help organizations simplify deployments and capture more value from data generated and processed outside the traditional data center and public cloud.
  • Introduced new telecom software, solutions and services to help communications service providers (CSPs) accelerate their open, cloud-native network deployments and create new revenue opportunities at the edge.
  • Announced APEX Cloud Services with VMware Cloud, which gives organizations the ability to move workloads across multiple cloud environments and scale resources quickly with predictable pricing and transparent costs.

VMware revenue was $3.2 billion for the third quarter, up 10% driven by broad-based strength across a diverse product portfolio. Operating income for the quarter was $837 million, or 26.3% of VMware revenue.

Executive quotes:

  • “We continue to deliver strong results, with more than $13 billion in cash flow from operations on a trailing-twelve-month basis,” said Tom Sweet, chief financial officer, Dell Technologies. “The digital trends are tailwinds for our business, and along with our strategy and financial flexibility, lead us to be optimistic about our long-term growth prospects.”
  • “Technology is more essential today than ever before, and we are clearly winning in our core, keeping us at the center of customers’ IT and digital agendas,” said Jeff Clarke, vice chairman and co-chief operating officer, Dell Technologies. “Our product, global operations and sales teams did an outstanding job this quarter as we shipped a record number of products and delivered record revenue of $28.4 billion.” 
  • “We’re three quarters into what will prove to be a historic year for Dell, and we are just beginning to write the next chapter of the Dell Technologies story,” said Chuck Whitten, co-chief operating officer, Dell Technologies. “We are uniquely positioned in the data era, with durable advantages and market-leading positions. Our strategy is focused on growing our core business and in adjacent multi-billion-dollar markets including multi-cloud, edge, telecom and as-a-Service.”

Conference call information
As previously announced, the Company will hold a conference call to discuss its third quarter performance today, Nov. 23, 2021 at 4:30 p.m. CST. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/events-and-presentations/upcoming-events

For those unable to listen to the live broadcast, an archived version will be available at the same location for one year.

Additional financial and operating information may be downloaded from https://investors.delltechnologies.com/financial-information/quarterly-results

Read our quarterly blog from Bill Scannell, Dell Technologies president of Global Sales & Customer Operations, to learn more about how we are helping customers with their digital transformations: https://www.delltechnologies.com/en-us/blog/accelerating-customers-digital-journeys-every-step-of-the-way/

About Dell Technologies

Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the data era.

1.    IDC WW Quarterly Personal Computing Device (PCD) Tracker CY21Q3.

Read the full release here.


Source: Dell Technologies

Subscribe to HPCwire's Weekly Update!

Be the most informed person in the room! Stay ahead of the tech trends with industy updates delivered to you every week!

Meta’s Massive New AI Supercomputer Will Be ‘World’s Fastest’

January 24, 2022

Fresh off its rebrand last October, Meta (née Facebook) is putting muscle behind its vision of a metaversal future with a massive new AI supercomputer called the AI Research SuperCluster (RSC). Meta says that RSC will b Read more…

Supercomputer Analysis Shows the Atmospheric Reach of the Tonga Eruption

January 21, 2022

On Saturday, an enormous eruption on the volcanic islands of Hunga Tonga and Hunga Haʻapai shook the Pacific Ocean. The explosion, which could be heard six thousand miles away in Alaska, caused tsunamis across the entir Read more…

NSB Issues US State of Science and Engineering 2022 Report

January 20, 2022

This week the National Science Board released its biannual U.S. State of Science and Engineering 2022 report, as required by the NSF Act. Broadly, the report presents a near-term view of S&E based mostly on 2019 data. To a large extent, this year’s edition echoes trends from the last few reports. The U.S. is still a world leader in R&D spending and S&E education... Read more…

Researchers Achieve 99 Percent Quantum Accuracy with Silicon-Embedded Qubits 

January 20, 2022

Researchers in Australia and the U.S. have made exciting headway in the quantum computing arms race. A multi-institutional team including the University of New South Wales and Sandia National Laboratory announced that th Read more…

Trio of Supercomputers Powers Estimate of Carbon in Earth’s Outer Core

January 20, 2022

Carbon is one of the essential building blocks of life on Earth, and it—along with hydrogen, nitrogen and oxygen—is one of the key elements researchers look for when they search for habitable planets and work to unde Read more…

AWS Solution Channel

shutterstock 718231072

Accelerating drug discovery with Amazon EC2 Spot Instances

This post was contributed by Cristian Măgherușan-Stanciu, Sr. Specialist Solution Architect, EC2 Spot, with contributions from Cristian Kniep, Sr. Developer Advocate for HPC and AWS Batch at AWS, Carlos Manzanedo Rueda, Principal Solutions Architect, EC2 Spot at AWS, Ludvig Nordstrom, Principal Solutions Architect at AWS, Vytautas Gapsys, project group leader at the Max Planck Institute for Biophysical Chemistry, and Carsten Kutzner, staff scientist at the Max Planck Institute for Biophysical Chemistry. Read more…

Multiverse Targets ‘Quantum Computing for the Masses’

January 19, 2022

The race to deliver quantum computing solutions that shield users from the underlying complexity of quantum computing is heating up quickly. One example is Multiverse Computing, a European company, which today launched the second financial services product in its Singularity product group. The new offering, Fair Price, “delivers a higher accuracy in fair price calculations for financial... Read more…

Meta’s Massive New AI Supercomputer Will Be ‘World’s Fastest’

January 24, 2022

Fresh off its rebrand last October, Meta (née Facebook) is putting muscle behind its vision of a metaversal future with a massive new AI supercomputer called t Read more…

Supercomputer Analysis Shows the Atmospheric Reach of the Tonga Eruption

January 21, 2022

On Saturday, an enormous eruption on the volcanic islands of Hunga Tonga and Hunga Haʻapai shook the Pacific Ocean. The explosion, which could be heard six tho Read more…

NSB Issues US State of Science and Engineering 2022 Report

January 20, 2022

This week the National Science Board released its biannual U.S. State of Science and Engineering 2022 report, as required by the NSF Act. Broadly, the report presents a near-term view of S&E based mostly on 2019 data. To a large extent, this year’s edition echoes trends from the last few reports. The U.S. is still a world leader in R&D spending and S&E education... Read more…

Multiverse Targets ‘Quantum Computing for the Masses’

January 19, 2022

The race to deliver quantum computing solutions that shield users from the underlying complexity of quantum computing is heating up quickly. One example is Multiverse Computing, a European company, which today launched the second financial services product in its Singularity product group. The new offering, Fair Price, “delivers a higher accuracy in fair price calculations for financial... Read more…

Students at SC21: Out in Front, Alongside and Behind the Scenes

January 19, 2022

The Supercomputing Conference (SC) is one of the biggest international conferences dedicated to high-performance computing, networking, storage and analysis. SC Read more…

Q-Ctrl – Tackling Quantum Hardware’s Noise Problems with Software

January 13, 2022

Implementing effective error mitigation and correction is a critical next step in advancing quantum computing. While a lot of attention has been given to effort Read more…

Nvidia Defends Arm Acquisition Deal: a ‘Once-in-a-Generation Opportunity’

January 13, 2022

GPU-maker Nvidia is continuing to try to keep its proposed acquisition of British chip IP vendor Arm Ltd. alive, despite continuing concerns from several governments around the world. In its latest action, Nvidia filed a 29-page response to the U.K. government to point out a list of potential benefits of the proposed $40 billion deal. Read more…

Nvidia Buys HPC Cluster Management Company Bright Computing

January 10, 2022

Graphics chip powerhouse Nvidia today announced that it has acquired HPC cluster management company Bright Computing for an undisclosed sum. Unlike Nvidia’s bid to purchase semiconductor IP company Arm, which has been stymied by regulatory challenges, the Bright deal is a straightforward acquisition that aims to expand... Read more…

IonQ Is First Quantum Startup to Go Public; Will It be First to Deliver Profits?

November 3, 2021

On October 1 of this year, IonQ became the first pure-play quantum computing start-up to go public. At this writing, the stock (NYSE: IONQ) was around $15 and its market capitalization was roughly $2.89 billion. Co-founder and chief scientist Chris Monroe says it was fun to have a few of the company’s roughly 100 employees travel to New York to ring the opening bell of the New York Stock... Read more…

US Closes in on Exascale: Frontier Installation Is Underway

September 29, 2021

At the Advanced Scientific Computing Advisory Committee (ASCAC) meeting, held by Zoom this week (Sept. 29-30), it was revealed that the Frontier supercomputer is currently being installed at Oak Ridge National Laboratory in Oak Ridge, Tenn. The staff at the Oak Ridge Leadership... Read more…

AMD Launches Milan-X CPU with 3D V-Cache and Multichip Instinct MI200 GPU

November 8, 2021

At a virtual event this morning, AMD CEO Lisa Su unveiled the company’s latest and much-anticipated server products: the new Milan-X CPU, which leverages AMD’s new 3D V-Cache technology; and its new Instinct MI200 GPU, which provides up to 220 compute units across two Infinity Fabric-connected dies, delivering an astounding 47.9 peak double-precision teraflops. “We're in a high-performance computing megacycle, driven by the growing need to deploy additional compute performance... Read more…

Intel Reorgs HPC Group, Creates Two ‘Super Compute’ Groups

October 15, 2021

Following on changes made in June that moved Intel’s HPC unit out of the Data Platform Group and into the newly created Accelerated Computing Systems and Graphics (AXG) business unit, led by Raja Koduri, Intel is making further updates to the HPC group and announcing... Read more…

Nvidia Buys HPC Cluster Management Company Bright Computing

January 10, 2022

Graphics chip powerhouse Nvidia today announced that it has acquired HPC cluster management company Bright Computing for an undisclosed sum. Unlike Nvidia’s bid to purchase semiconductor IP company Arm, which has been stymied by regulatory challenges, the Bright deal is a straightforward acquisition that aims to expand... Read more…

D-Wave Embraces Gate-Based Quantum Computing; Charts Path Forward

October 21, 2021

Earlier this month D-Wave Systems, the quantum computing pioneer that has long championed quantum annealing-based quantum computing (and sometimes taken heat fo Read more…

Killer Instinct: AMD’s Multi-Chip MI200 GPU Readies for a Major Global Debut

October 21, 2021

AMD’s next-generation supercomputer GPU is on its way – and by all appearances, it’s about to make a name for itself. The AMD Radeon Instinct MI200 GPU (a successor to the MI100) will, over the next year, begin to power three massive systems on three continents: the United States’ exascale Frontier system; the European Union’s pre-exascale LUMI system; and Australia’s petascale Setonix system. Read more…

Three Chinese Exascale Systems Detailed at SC21: Two Operational and One Delayed

November 24, 2021

Details about two previously rumored Chinese exascale systems came to light during last week’s SC21 proceedings. Asked about these systems during the Top500 media briefing on Monday, Nov. 15, list author and co-founder Jack Dongarra indicated he was aware of some very impressive results, but withheld comment when asked directly if he had... Read more…

Leading Solution Providers

Contributors

Lessons from LLVM: An SC21 Fireside Chat with Chris Lattner

December 27, 2021

Today, the LLVM compiler infrastructure world is essentially inescapable in HPC. But back in the 2000 timeframe, LLVM (low level virtual machine) was just getting its start as a new way of thinking about how to overcome shortcomings in the Java Virtual Machine. At the time, Chris Lattner was a graduate student of... Read more…

2021 Gordon Bell Prize Goes to Exascale-Powered Quantum Supremacy Challenge

November 18, 2021

Today at the hybrid virtual/in-person SC21 conference, the organizers announced the winners of the 2021 ACM Gordon Bell Prize: a team of Chinese researchers leveraging the new exascale Sunway system to simulate quantum circuits. The Gordon Bell Prize, which comes with an award of $10,000 courtesy of HPC pioneer Gordon Bell, is awarded annually... Read more…

Nvidia Defends Arm Acquisition Deal: a ‘Once-in-a-Generation Opportunity’

January 13, 2022

GPU-maker Nvidia is continuing to try to keep its proposed acquisition of British chip IP vendor Arm Ltd. alive, despite continuing concerns from several governments around the world. In its latest action, Nvidia filed a 29-page response to the U.K. government to point out a list of potential benefits of the proposed $40 billion deal. Read more…

Julia Update: Adoption Keeps Climbing; Is It a Python Challenger?

January 13, 2021

The rapid adoption of Julia, the open source, high level programing language with roots at MIT, shows no sign of slowing according to data from Julialang.org. I Read more…

Top500: No Exascale, Fugaku Still Reigns, Polaris Debuts at #12

November 15, 2021

No exascale for you* -- at least, not within the High-Performance Linpack (HPL) territory of the latest Top500 list, issued today from the 33rd annual Supercomputing Conference (SC21), held in-person in St. Louis, Mo., and virtually, from Nov. 14–19. "We were hoping to have the first exascale system on this list but that didn’t happen," said Top500 co-author... Read more…

TACC Unveils Lonestar6 Supercomputer

November 1, 2021

The Texas Advanced Computing Center (TACC) is unveiling its latest supercomputer: Lonestar6, a three peak petaflops Dell system aimed at supporting researchers Read more…

10nm, 7nm, 5nm…. Should the Chip Nanometer Metric Be Replaced?

June 1, 2020

The biggest cool factor in server chips is the nanometer. AMD beating Intel to a CPU built on a 7nm process node* – with 5nm and 3nm on the way – has been i Read more…

Intel Launches 10nm ‘Ice Lake’ Datacenter CPU with Up to 40 Cores

April 6, 2021

The wait is over. Today Intel officially launched its 10nm datacenter CPU, the third-generation Intel Xeon Scalable processor, codenamed Ice Lake. With up to 40 Read more…

  • arrow
  • Click Here for More Headlines
  • arrow
HPCwire