Dell Technologies Reports Fiscal Year 2019 Second Quarter Financial Results

ROUND ROCK, Texas, Sept. 6, 2018

News summary

• GAAP revenue up 18 percent to $22.9 billion
• Double-digit growth across all reportable segments—Infrastructure Solutions Group, Client Solutions Group and VMware
• Strong operating cash flow and continued debt pay down
• Full-year guidance increased based on strong first half results

Full story
Dell Technologies (NYSE: DVMT) announces its fiscal 2019 second quarter results. For the second quarter, revenue was $22.9 billion, up 18 percent, and non-GAAP revenue was $23.1 billion, up 16 percent from the prior period. During the quarter, the company generated a GAAP operating loss of $13 million¹, with a non-GAAP operating income of $2.1 billion, up 13 percent. Cash flow from operations was $2.6 billion, and excluding the impact of financing receivables, cash flow from operations would have been $3.1 billion².

"We are in the early stages of a global, technology-led investment cycle in which every company is becoming a technology company," said Michael Dell, chairman and CEO, Dell Technologies. "As our results indicate, Dell Technologies is perfectly positioned to grow, gain share, drive innovation and be our customers' best, most trusted partner on the journey to their digital future."

"Dell Technologies delivered another strong quarter, with double-digit revenue growth across all three of our reportable segments and strong cash flow generation for the first half of the year," said Tom Sweet, chief financial officer, Dell Technologies. "Looking toward the second half of fiscal 2019, we'll balance this growth by executing across strategic areas of the business, including driving additional share gains, continuing to generate strong cash flow and addressing our customers' needs with our full range of capabilities.

"Given our momentum in the first half of the fiscal year, we increased the revenue, operating income and net income guidance ranges we provided on July 2, in conjunction with the Class V exchange transaction announcement."

The company ended the second quarter with a cash and investments balance of $21.5 billion. In the quarter, Dell Technologies paid down approximately $2.6 billion of core debt³, and subsequent to the end of the quarter, the company prepaid $600 million of additional debt. Over the past two years, Dell Technologies has paid down approximately $13.7 billion in gross debt, excluding Dell Financial Services related and subsidiary debt.