This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect the Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the Securities and Exchange Commission, including Dell Technologies' Annual Report on Form 10-K for the fiscal year ended February 3, 2017, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the Securities and Exchange Commission's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.
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DELL TECHNOLOGIES INC. |
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Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights |
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(in millions, except per share amounts and percentages; unaudited) |
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Three Months Ended |
Six Months Ended |
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August 4, 2017 |
July 29, 2016 |
Change |
August 4, 2017 |
July 29, 2016 |
Change |
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Net revenue: |
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|
Products |
$ 14,355 |
$ 10,961 |
31 % |
$ 27,323 |
$ 21,144 |
29 % |
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Services |
4,944 |
2,119 |
133 % |
9,792 |
4,177 |
134 % |
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Total net revenue |
19,299 |
13,080 |
48 % |
37,115 |
25,321 |
47 % |
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Cost of net revenue: |
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|
Products |
12,378 |
9,495 |
30 % |
23,837 |
18,294 |
30 % |
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|
Services |
2,112 |
1,249 |
69 % |
4,167 |
2,498 |
67 % |
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Total cost of net revenue |
14,490 |
10,744 |
35 % |
28,004 |
20,792 |
35 % |
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Gross margin |
4,809 |
2,336 |
106 % |
9,111 |
4,529 |
101 % |
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Operating expenses: |
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|
Selling, general, and administrative |
4,695 |
2,023 |
132 % |
9,364 |
4,091 |
129 % |
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Research and development |
1,093 |
246 |
344 % |
2,226 |
510 |
336 % |
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Total operating expenses |
5,788 |
2,269 |
155 % |
11,590 |
4,601 |
152 % |
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Operating income (loss) |
(979) |
67 |
NM |
(2,479) |
(72) |
NM |
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Interest and other, net |
(545) |
(349) |
(56)% |
(1,118) |
(568) |
(97)% |
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Loss from continuing operations before income taxes |
(1,524) |
(282) |
(440)% |
(3,597) |
(640) |
(462)% |
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|
Income tax provision (benefit) |
(546) |
(20) |
NM |
(1,236) |
46 |
NM |
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Net loss from continuing operations |
(978) |
(262) |
(273)% |
(2,361) |
(686) |
(244)% |
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Income from discontinued operations, net of income taxes |
- |
834 |
NA |
- |
1,313 |
NA |
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Net income (loss) |
(978) |
572 |
(271)% |
(2,361) |
627 |
(477)% |
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|
Less: Net loss attributable to non-controlling interests |
(32) |
(1) |
NM |
(81) |
(1) |
NM |
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Net income (loss) attributable to Dell Technologies Inc. |
$ (946) |
$ 573 |
(265)% |
$ (2,280) |
$ 628 |
(463)% |
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Earnings (loss) per share attributable to Dell Technologies Inc. - basic: |
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Continuing operations - Class V Common Stock - basic |
$ 0.83 |
$ - |
$ 1.40 |
$ - |
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Continuing operations - DHI Group - basic |
$ (1.97) |
$ (0.64) |
$ (4.53) |
$ (1.69) |
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Discontinued operations - DHI Group - basic |
$ - |
$ 2.06 |
$ - |
$ 3.24 |
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Earnings (loss) per share attributable to Dell Technologies Inc. - diluted: |
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Continuing operations - Class V Common Stock - diluted |
$ 0.82 |
$ - |
$ 1.38 |
$ - |
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Continuing operations - DHI Group - diluted |
$ (1.97) |
$ (0.64) |
$ (4.54) |
$ (1.69) |
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Discontinued operations - DHI Group - diluted |
$ - |
$ 2.06 |
$ - |
$ 3.24 |
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Weighted-average shares outstanding: |
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|
Basic - Class V Common Stock |
203 |
- |
205 |
- |
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|
Diluted - Class V Common Stock |
203 |
- |
205 |
- |
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|
Basic - DHI Group |
566 |
405 |
566 |
405 |
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Diluted - DHI Group |
566 |
405 |
566 |
405 |
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Percentage of Total Net Revenue: |
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|
Gross margin |
25 % |
18 % |
25 % |
18 % |
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|
Selling, general, and administrative |
24 % |
15 % |
25 % |
16 % |
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|
Research and development |
6 % |
2 % |
6 % |
2 % |
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|
Operating expenses |
30 % |
17 % |
31 % |
18 % |
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|
Operating income (loss) |
(5)% |
1 % |
(7)% |
(0)% |
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|
Loss from continuing operations before income taxes |
(8)% |
(2)% |
(10)% |
(3)% |
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|
Net loss from continuing operations |
(5)% |
(2)% |
(6)% |
(3)% |
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Income tax rate |
36 % |
7 % |
34 % |
(7)% |
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