Dell Technologies Reports Fiscal Year 2018 Second Quarter Financial Results

September 7, 2017

ROUND ROCK, Texas, Sept. 7, 2017 — Dell Technologies (NYSE: DVMT) announces its fiscal 2018 second quarter results1. For the second quarter, consolidated revenue was $19.3 billion and non-GAAP revenue was $19.6 billion. During the quarter, the company generated an operating loss of $1.0 billion, with non-GAAP operating income of $1.6 billion. The company generated cash flow from operations of $1.8 billion.

“Today we celebrate one year since the historic combination between Dell and EMC. We’ve experienced great progress in bringing together our family of businesses and offering our customers and partners the most comprehensive set of solutions,” said Tom Sweet, chief financial officer, Dell Technologies. “In the second quarter, we generated strong cash flow and made progress on our de-levering goal. We were pleased with the growth velocity of our client, server, hyperconverged and all-flash array offerings. We have the right strategy, portfolio and investments in place to deliver long-term growth.”

Since Sept. 7, 2016, Dell Technologies has delivered significant results, including:

  • Combining two great companies, creating the essential IT infrastructure company with more than 140,000 employees
  • Combining two salesforces into one powerful go-to-market motion and creating an integrated channel program, both of which are driving velocity and revenue synergies across all segments
  • Expansion of the Dell Financial Services (DFS) portfolio, now the exclusive originator of Dell EMC business and the VMware preferred finance partner
  • Industry leadership in newer and fast-growing categories, including all-flash and hyperconverged infrastructure

Fiscal second quarter 2018 results

Three Months Ended

Six Months Ended

August 4, 2017

July 29, 2016


August 4, 2017

July 29, 2016


(in millions, except percentages; unaudited)

Net revenue

$               19,299

$               13,080

48 %

$               37,115

$               25,321

47 %

Operating income (loss)

$                  (979)

$                      67


$               (2,479)

$                    (72)


Net loss from continuing operations

$                  (978)

$                  (262)


$               (2,361)

$                  (686)


Non-GAAP net revenue

$               19,634

$               13,145

49 %

$               37,805

$               25,464

48 %

Non-GAAP operating income

$                 1,552

$                    756

105 %

$                 2,749

$                 1,295

112 %

Non-GAAP net income from continuing operations

$                    873

$                    362

141 %

$                 1,454

$                    626

132 %

Adjusted EBITDA

$                 1,866

$                    884

111 %

$                 3,433

$                 1,527

125 %

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 (Dell) continued to take share globally while growing profitably. Dell outperformed the market worldwide, experiencing 3.7 percent unit growth during the calendar quarter2. Revenue for the second fiscal quarter was $9.9 billion, up 7 percent year over year and the highest since the same quarter of fiscal 2015. Operating income was $566 million for the quarter, a 17 percent increase or 5.7 percent of revenue.

Key highlights:

  • Increased PC shipments by 3.7 percent, with 18 consecutive quarters of year-over-year PC unit share growth and the highest market share since 20062
  • Strong notebook momentum and double-digit revenue growth across all high-end commercial and consumer product lines
  • Ranked No. 1 workstation vendor worldwide3
  • No. 1 displays provider worldwide for the 16th consecutive quarter and double-digit revenue growth4

Infrastructure Solutions Group (Dell EMC) generated $7.4 billion in revenue, up 7 percent quarter over quarter. Server and networking revenue was $3.7 billion, a quarter-over-quarter and year-over-year increase of 16 percent, and storage revenue was $3.7 billion. Operating income for the quarter was $430 million.

Key highlights:

  • Continued triple-digit demand growth for hyperconverged portfolio, including VxRail, which has more than 2,000 customers and 14,000 nodes deployed to date
  • Launched and shipped new 14G servers; strong overall server demand growth in each of the major regions
  • Strong all-flash growth at scale, more than 2x the nearest competitor
  • Double-digit demand growth in next-generation Isilon scale-out NAS with new Infinity architecture
  • Strong demand for our flexible consumption and utility models, signing several large, multi-year strategic deals

VMware segment revenue for the second quarter was $1.9 billion, with operating income of $561 million, or 29.4 percent of revenue.

Additional financial highlights

The company ended the quarter with a cash and investments balance of $15.3 billion. In the second quarter, Dell Technologies paid down $1.0 billion of core debt. Additionally, subsequent to quarter-end, the company paid down the $1.5 billion bridge facility. Including these latest debt payments, the company has repaid approximately $9.5 billion of gross debt, excluding DFS-related debt, since closing the EMC transaction.

Also since closing the EMC transaction, the company has repurchased a total of 19.7 million shares of Class V common stock for $1.1 billion, under both the previously announced Class V Group and DHI Group repurchase programs. The company also has announced its board has approved an amendment to the Class V Group repurchase program for up to an additional $300 million of repurchases over six months. This will be funded from proceeds of sales of VMware Class A common stock under a new stock purchase agreement with VMware.

Conference call information

As previously announced, the company will hold a conference call to discuss its second quarter performance today at 7 a.m. CDT. The conference call will be broadcast live over the internet and can be accessed at 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

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.

Source: Dell

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