DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights

(in millions, except percentages; unaudited)

Three Months Ended

May 3, 2019

May 4, 2018

Change

Net revenue:

Products

$

16,754

$

16,671

—%

Services

5,154

4,685

10%

Total net revenue

21,908

21,356

3%

Cost of net revenue:

Products

13,079

13,606

Services

2,032

1,872

9%

Total cost of net revenue

15,111

15,478

(2)%

Gross margin

6,797

5,878

16%

Operating expenses:

Selling, general, and administrative

5,071

4,944

3%

Research and development

1,176

1,087

8%

Total operating expenses

6,247

6,031

4%

Operating income (loss)

550

(153)

459%

Interest and other, net

(470)

(47)%

Loss before income taxes

(143)

(623)

77%

Income tax benefit

(472)

(85)

(455)%

Net income (loss)

329

(538)

161%

Less: Net income attributable to non-controlling interests

36

98

63%

Net income (loss) attributable to Dell Technologies Inc.

$

293

$

146%

Percentage of Total Net Revenue:

Gross margin

31

%

28

%

Selling, general, and administrative

23

%

23

%

Research and development

5

%

5

%

Operating expenses

29

%

28

%

Operating income (loss)

3

%

(1)

%

Loss before income taxes

(1)

%

(3)

%

Net income (loss)

2

%

(3)

%

Income tax rate

330.1

%

13.6

%