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 Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies' annual report on Form 10-K for the fiscal year ended February 1, 2019, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC'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.
DELL TECHNOLOGIES INC.
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| Three Months Ended |
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| Fiscal Year Ended |
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| January 31,
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| February 1,
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| Change |
| January 31,
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| February 1,
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| Change | ||||||||
Net revenue (a): |
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Products | $ | 18,153 |
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| $ | 18,676 |
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| (3)% |
| $ | 69,918 |
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| $ | 70,751 |
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| (1)% |
Services | 5,879 |
|
| 5,165 |
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| 14% |
| 22,236 |
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| 19,870 |
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| 12% | ||||
Total net revenue | 24,032 |
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| 23,841 |
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| 1% |
| 92,154 |
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| 90,621 |
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| 2% | ||||
Cost of net revenue: |
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Products | 13,999 |
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| 14,775 |
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| (5)% |
| 54,525 |
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| 57,889 |
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| (6)% | ||||
Services | 2,349 |
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| 1,957 |
|
| 20% |
| 8,696 |
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| 7,679 |
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| 13% | ||||
Total cost of net revenue | 16,348 |
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| 16,732 |
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| (2)% |
| 63,221 |
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| 65,568 |
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| (4)% | ||||
Gross margin | 7,684 |
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| 7,109 |
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| 8% |
| 28,933 |
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| 25,053 |
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| 15% | ||||
| Operating expenses: |
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| Selling, general, and
| 5,642 |
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| 5,576 |
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| 1% |
| 21,319 |
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| 20,640 |
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| 3% | ||||
| Research and development | 1,325 |
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| 1,202 |
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| 10% |
| 4,992 |
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| 4,604 |
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| 8% | ||||
| Total operating expenses | 6,967 |
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| 6,778 |
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| 3% |
| 26,311 |
|
| 25,244 |
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| 4% | ||||
| Operating income (loss) | 717 |
|
| 331 |
|
| 117% |
| 2,622 |
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| (191) |
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| NM | ||||
| Interest and other, net | (626) |
|
| (606) |
|
| (3)% |
| (2,626) |
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| (2,170) |
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| (21)% | ||||
| Income (loss) before income taxes | 91 |
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| (275) |
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| 133% |
| (4) |
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| (2,361) |
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| 100% | ||||
| Income tax provision (benefit) | (325) |
|
| 12 |
|
| NM |
| (5,533) |
|
| (180) |
|
| NM | ||||
| Net income (loss) | 416 |
|
| (287) |
|
| 245% |
| 5,529 |
|
| (2,181) |
|
| 354% | ||||
| Less: Net income attributable to
| 8 |
|
| 12 |
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| (33)% |
| 913 |
|
| 129 |
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| 608% | ||||
| Net income (loss) attributable
| $ | 408 |
|
| $ | (299) |
|
| 236% |
| $ | 4,616 |
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| $ | (2,310) |
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| 300% |
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| Percentage of Total Net Revenue: |
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| Gross margin | 32% |
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| 30% |
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|
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| 31% |
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| 28% |
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| Selling, general, and
| 23% |
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| 23% |
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|
|
| 23% |
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| 23% |
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| Research and development | 6% |
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| 5% |
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|
|
| 5% |
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| 5% |
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|
| ||||
| Operating expenses | 29% |
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| 28% |
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|
|
| 29% |
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| 28% |
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|
| ||||
| Operating income (loss) | 3% |
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| 1% |
|
|
|
| 3% |
|
| —% |
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|
| ||||
| Income (loss) before income
| —% |
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| (1)% |
|
|
|
| —% |
|
| (3)% |
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|
| ||||
| Net income (loss) | 2% |
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| (1)% |
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|
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| 6% |
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| (2)% |
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|
| ||||
| Income tax rate | (357.1)% |
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| (4.4)% |
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|
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| 138325.0% |
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| 7.6% |
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| ____________________ | |||||||||||||||||||
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| (a) | During the fourth quarter of Fiscal 2020, the Company reclassified revenue associated with certain service and software-as-
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