Feb. 28, 2020 — Dell Technologies announces financial results for its fiscal 2020 fourth quarter and full year.

Fourth quarter revenue was $24.0 billion, up 1 percent, and non-GAAP revenue was $24.1 billion, up 1 percent, over the same period last year. During the quarter, the company generated operating income of $717 million, a 117 percent increase over the same period in the prior year, and non-GAAP operating income of $2.8 billion, up 4 percent over the prior year. Net income was $416 million or approximately 2 percent of revenue. Non-GAAP net income was $1.7 billion or 7 percent of non-GAAP revenue. Diluted earnings per share was $0.54 and non-GAAP diluted earnings per share was $2.00.

For the full year, revenue was $92.2 billion, up 2 percent, and non-GAAP revenue was $92.5 billion, up 1 percent, over the prior year. The company increased its operating income to $2.6 billion from a $0.2 billion loss in the prior year and generated non-GAAP operating income of $10.1 billion, up 15 percent over the prior year. Cash flow from operations was $9.3 billion, up 33 percent from fiscal year 2019. For the full year, net income was $5.5 billion and non-GAAP net income was $6.1 billion. Diluted earnings per share was $6.03 and non-GAAP diluted earnings per share was $7.35.

“In fiscal 2020, we focused on integration and simplicity across our businesses and product portfolio to accelerate winning go-to-market solutions for our customers,” said Jeff Clarke, chief operating officer, Dell Technologies. “With more than $180 billion in revenue over the past two years and significant investments in research, innovation and breadth of capability, we have a uniquely advantaged position heading into the next digital decade.”

Fourth Quarter and Full Year Fiscal 2020 Financial Results

	Three Months Ended								Fiscal Year Ended
	January 31, 2020			February 1, 2019			Change		January 31, 2020			February 1, 2019			Change
		(in millions, except percentages; unaudited)
Total net revenue	$	24,032		$	23,841		1%		$	92,154		$	90,621		2%
Operating income (loss)	$	717		$	331		117%		$	2,622		$	(191)		NM
Net income (loss)	$	416		$	(287)		245%		$	5,529		$	(2,181)		354%
Non-GAAP net revenue	$	24,129		$	24,008		1%		$	92,501		$	91,324		1%
Non-GAAP operating income	$	2,767		$	2,656		4%		$	10,148		$	8,854		15%
Non-GAAP net income	$	1,684		$	1,592		6%		$	6,089		$	5,227		16%
Adjusted EBITDA	$	3,201		$	3,028		6%		$	11,787		$	10,296		14%

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 a cash and investments balance of $10.2 billion. The company repaid approximately $1.5 billion of gross debt in the quarter and $5 billion for the year, achieving its fiscal 2020 target. The company has paid down $19.5 billion in gross debt since closing the EMC transaction in September 2016.

“This year’s results were driven by operational focus and expanding synergies across Dell Technologies and our ability to adjust to win in any environment,” said Tom Sweet, chief financial officer, Dell Technologies. “We delivered full year net income of $5.5 billion and adjusted EBITDA of $11.8 billion in fiscal 2020. I’m pleased with our profitability and remain committed to maximizing Dell Technologies’ equity value for all aligned shareholders.”

The company also announced today a new share repurchase program of up to $1 billion over the next 24 months, effective immediately. While de-levering remains the primary capital allocation goal, the company sees an opportunity to take advantage of what it believes is a significant discount in the current stock price. This share repurchase plan is another lever the company will use as it continues to focus on creating value for shareholders.

Operating segments summary

Client Solutions Group revenue for the fourth quarter was $11.8 billion, up 8 percent year over year. This was driven by $8.6 billion in commercial revenue, a 10 percent increase, and $3.2 billion in consumer revenue, a 4 percent increase. Operating income was $624 million or approximately 5 percent of Client Solutions Group revenue. For the full year, the Client Solutions Group delivered record revenue of $45.8 billion, up 6 percent versus the prior year, with commercial up 11 percent. Client Solutions Group full year operating income was $3.1 billion.

Key highlights:

• Shipped a record 46.5 million units during the 2019 calendar year¹
• Gained PC unit share for the last seven years in a row¹
• Achieved double-digit unit and revenue growth in commercial desktops and workstations, completing a full fiscal year of quarterly double-digit growth in the segment

Infrastructure Solutions Group revenue for the fourth quarter was $8.8 billion, down 11 percent. Storage revenue was $4.5 billion, down 3 percent, while servers and networking revenue was $4.3 billion, down 19 percent. Operating income for the group was $1.1 billion or approximately 13 percent of revenue. Revenue for full fiscal 2020 was $34.0 billion, with operating income of $4.0 billion.

Key highlights:

• Gained 590 basis points of mainstream server revenue share over the last 3 years, and have been the #1 worldwide provider for 7 quarters²
• Strong customer traction with our co-engineered ‟first and best” solutions, including Dell Technologies Cloud, Unified Workspace, VxRail and smart fabric director
• Announced the latest advancements to Dell Technologies Cloud, including a new subscription-based model that makes it easier for customers to accelerate hybrid cloud deployments and simplify IT operations

VMware revenue for the fourth quarter was $3.1 billion, with operating income of $1.0 billion. The segment delivered $10.9 billion in revenue and $3.1 billion in operating income for the full fiscal year. During the fourth quarter, VMware, Inc. acquired Pivotal Software, Inc. (“Pivotal”), and VMware’s segment results are inclusive of Pivotal.  Prior periods have been recast to conform with current period presentation.

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