Future-of-Work Solutions Power Dell Technologies' Record First Quarter Fiscal 2022 Financial Results

Rhea-AI Summary

Dell Technologies announced record financial results for Q1 fiscal 2022, achieving $24.5 billion in revenue, a 12% increase year-over-year. Operating income rose 96% to $1.4 billion and diluted EPS surged 495% to $1.13. Non-GAAP net income reached $1.8 billion, up 59%. The company reported remaining performance obligations of $42 billion and cash reserves of $15.9 billion.

Strength across Infrastructure Solutions, Client Solutions, and VMware contributed to this growth, with a focus on enhancing digital transformation initiatives.

Positive

• Record Q1 revenue of $24.5 billion, up 12%
• Operating income increased 96% to $1.4 billion
• Diluted EPS surged 495% to $1.13
• Non-GAAP net income rose 59% to $1.8 billion
• Remaining performance obligations of $42 billion
• Cash and investments totaled $15.9 billion

Negative

• None.

ROUND ROCK, Texas, May 27, 2021 /PRNewswire/ --

News summary

• Record first quarter revenue of $24.5 billion, up 12%, driven by growth across Infrastructure Solutions, Client Solutions and VMware business units
• Record first quarter operating income of $1.4 billion, up 96%, and record first quarter non-GAAP operating income of $2.7 billion, up 26%
• Diluted earnings per share up 495% to $1.13, non-GAAP diluted earnings per share up 59% to $2.13

Full story

Dell Technologies (NYSE: DELL) announces record financial results for its fiscal 2022 first quarter. Revenue was up 12% to $24.5 billion. The company generated operating income of $1.4 billion, a 96% increase over the same period in the prior year, and non-GAAP operating income of $2.7 billion, up 26%. Net income was $938 million, non-GAAP net income was $1.8 billion and adjusted EBITDA was $3.2 billion. Net cash from operating activities was $2.2 billion. Diluted earnings per share was $1.13, up 495% and non-GAAP diluted earnings per share was $2.13, up 59%.

"There has been a substantial acceleration in digital transformation across the globe and you can see it in our results with record first quarter revenue of $24.5 billion. Now more than ever, customers are turning to Dell Technologies to help build their digital future," said Jeff Clarke, chief operating officer and vice chairman, Dell Technologies. "Looking ahead, we see technology becoming increasingly central to the global economy and society. We're excited for the opportunities ahead and for the data-fueled future we're creating."

First Quarter Fiscal 2022 Financial Results
	Three Months Ended
	April 30, 2021				May 1, 2020				Change
	(in millions, except per share amounts and percentages; unaudited)
Total net revenue	$	24,487			$	21,897			12%
Operating income	$	1,375			$	702			96%
Net income	$	938			$	182			415%
Earnings per share - diluted	$	1.13			$	0.19			495%
Non-GAAP net revenue	$	24,499			$	21,945			12%
Non-GAAP operating income	$	2,714			$	2,161			26%
Non-GAAP net income	$	1,819			$	1,143			59%
Adjusted EBITDA	$	3,235			$	2,607			24%
Non-GAAP earnings per share - diluted	$	2.13			$	1.34			59%

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 remaining performance obligations of $42 billion and cash and investments of $15.9 billion. The company has paid down $2.5 billion in debt year-to-date and revised its debt paydown target for its fiscal year 2022 to at least $16.0 billion upon completion of its announced spin-off of VMware.

"We had record first quarter revenue and operating income, and record trailing 12 month cash flow from operations of $14.4 billion – all driven by strength and execution across all three of our business units," said Tom Sweet, chief financial officer, Dell Technologies. "Our focus continues to be on strengthening our capital structure, modernizing our core infrastructure and PC businesses, and continuing to grow in hybrid and private cloud, edge, telecom and as-a-Service."

Operating segments summary

Earlier in May, at Dell Technologies World, the company announced new offers for its APEX portfolio of as-a-Service offerings, and a new set of solutions and partnerships designed to extract more value from data at the edge, including smart manufacturing solutions. The APEX portfolio of services allows customers to scale IT as needed to launch new applications, kickstart new projects and address the changing needs of their organizations – all managed by Dell and accessed through a single console.

Client Solutions Group had record revenue for the first quarter of $13.3 billion, up 20%. Operating income was a record $1.1 billion, up 84%, and 8.2% of Client Solutions Group revenue, as the company innovates across the ecosystem to deliver an enhanced experience for customers looking to work and play effectively from anywhere. Consumer revenue was $3.5 billion, up 42%, while commercial client revenue was $9.8 billion, up 14%.

Key highlights:

• Consumer online business orders up 58%, with XPS notebook orders up 21% and Alienware notebooks orders up 76%
• Double-digit orders growth in Latitude, Precision systems, and Commercial Chromebooks
• Announced a sweeping new portfolio of commercial, consumer and gaming devices to help people create, play and work from anywhere

Infrastructure Solutions Group revenue for the first quarter was $7.9 billion, up 5% as customers accelerate their IT investments with focus on hybrid cloud solutions. Servers and networking revenue was $4.1 billion, up 9%, and storage revenue was $3.8 billion. Operating income was $788 million for the first quarter, up 8%, or approximately 10% of Infrastructure Solutions Group revenue.

Key highlights:

• Expanded the Dell EMC PowerProtect Cyber Recovery solution with multi-cloud options to help customers build a cyber resilient strategy as ransomware threats continue
• Launch of Dell EMC PowerStore software advancements that improve workload performance by up to 25%, building on its novel container-based architecture and supporting the new PowerStore 500, a lower-cost model suitable for a broad range of businesses and use cases with enterprise performance and features
• Launch of the next generation of Dell EMC PowerEdge servers, the most powerful and secure systems to date, embracing AI and addressing customer need to keep pace with IT demands in data centers and at the edge
• Launch of Dell EMC Streaming Data Platform advancements that offer powerful, real-time analytics at the edge and the Dell Technologies Manufacturing Edge Solution enabling critical applications in smart manufacturing

VMware revenue was $3.0 billion for the first quarter, up 9% driven by broad-based strength across a diverse product portfolio. Operating income for the quarter was $841 million, or 28.1% of VMware revenue.

Conference call information

As previously announced, the Company will hold a conference call to discuss its first quarter performance today, May 27, 2021 at 4:30 p.m. CDT. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/events-and-presentations/upcoming-events

For those unable to listen to the live broadcast, an archived version will be available at the same location for one year.

Additional financial and operating information may be downloaded from https://investors.delltechnologies.com/financial-information/quarterly-results

About Dell Technologies

Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.

Copyright © 2021 Dell Inc. or its subsidiaries.  All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries.  Other trademarks may be trademarks of their respective owners.

Non-GAAP Financial Measures:

This press release presents information about Dell Technologies' non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, EBITDA, and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:

Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.

Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: risks and uncertainties relating to our agreement to spin off VMware, Inc., including risks that could affect our ability to complete the transaction on the terms announced or at all and the potential effects on our business of the announcement and consummation of the transaction; the effects of the COVID-19 pandemic; competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies' foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies' product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; weak economic conditions and the effect of additional regulation on Dell Technologies' financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies' infrastructure; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; compliance requirements of changing environmental and safety laws or other laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; Dell Technologies' dependence on the services of Michael Dell and key employees; Dell Technologies' level of indebtedness; and the impact of the financial performance of VMware, Inc.

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 January 29, 2021, 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. Condensed Consolidated Statements of Income and Related Financial Highlights (in millions, except percentages; unaudited)
	Three Months Ended
	April 30, 2021				May 1, 2020				Change
Net revenue:
Products	$	18,034			$	16,038			12%
Services	6,453				5,859				10%
Total net revenue	24,487				21,897				12%
Cost of net revenue:
Products	14,214				12,804				11%
Services	2,615				2,240				17%
Total cost of net revenue	16,829				15,044				12%
Gross margin	7,658				6,853				12%
Operating expenses:
Selling, general, and administrative	4,960				4,886				2%
Research and development	1,323				1,265				5%
Total operating expenses	6,283				6,151				2%
Operating income	1,375				702				96%
Interest and other, net	(388)				(566)				31%
Income before income taxes	987				136				626%
Income tax expense (benefit)	49				(46)				207%
Net income	938				182				415%
Less: Net income attributable to non-controlling interests	51				39				31%
Net income attributable to Dell Technologies Inc.	$	887			$	143			520%
Percentage of Total Net Revenue:
Gross margin	31		%		31		%
Selling, general, and administrative	20		%		22		%
Research and development	5		%		6		%
Operating expenses	26		%		28		%
Operating income	6		%		3		%
Income before income taxes	4		%		1		%
Net income	4		%		1		%
Income tax rate	5.0		%		-33.8		%

 

 

DELL TECHNOLOGIES INC. Consolidated Statements of Financial Position (in millions; unaudited)
	April 30, 2021				January 29, 2021
ASSETS
Current assets:
Cash and cash equivalents	$	14,244			$	14,201
Accounts receivable, net	10,909				12,788
Short-term financing receivables, net	4,980				5,155
Inventories, net	3,828				3,402
Other current assets	8,378				8,021
Total current assets	42,339				43,567
Property, plant, and equipment, net	6,557				6,431
Long-term investments	1,670				1,624
Long-term financing receivables, net	5,261				5,339
Goodwill	40,839				40,829
Intangible assets, net	13,729				14,429
Other non-current assets	11,357				11,196
Total assets	$	121,752			$	123,415
LIABILITIES, REDEEMABLE SHARES, AND STOCKHOLDERS' EQUITY
Current liabilities:
Short-term debt	$	8,748			$	6,362
Accounts payable	21,545				21,696
Accrued and other	7,728				9,549
Short-term deferred revenue	16,835				16,525
Total current liabilities	54,856				54,132
Long-term debt	37,935				41,622
Long-term deferred revenue	14,541				14,276
Other non-current liabilities	5,276				5,360
Total liabilities	112,608				115,390
Redeemable shares	558				472
Stockholders' equity:
Total Dell Technologies Inc. stockholders' equity	3,487				2,479
Non-controlling interests	5,099				5,074
Total stockholders' equity	8,586				7,553
Total liabilities, redeemable shares, and stockholders' equity	$	121,752			$	123,415

 

 

DELL TECHNOLOGIES INC. Condensed Consolidated Statements of Cash Flows (in millions; unaudited)
	Three Months Ended
	April 30, 2021				May 1, 2020
Cash flows from operating activities:
Net income	$	938			$	182
Adjustments to reconcile net income to net cash provided by (used in) operating activities	1,300				(978)
Change in cash from operating activities	2,238				(796)
Cash flows from investing activities:
Purchases of investments	(146)				(56)
Maturities and sales of investments	256				39
Capital expenditures and capitalized software development costs	(625)				(559)
Acquisition of businesses and assets, net	(10)				(38)
Divestitures of businesses and assets, net	—				120
Other	6				9
Change in cash from investing activities	(519)				(485)
Cash flows from financing activities:
Proceeds from the issuance of common stock	160				116
Repurchases of parent common stock	(9)				(240)
Repurchases of subsidiary common stock (a)	(434)				(300)
Proceeds from debt	2,726				10,135
Repayments of debt	(4,070)				(5,405)
Other	(11)				(42)
Change in cash from financing activities	(1,638)				4,264
Effect of exchange rate changes on cash, cash equivalents, and restricted cash	(5)				(136)
Change in cash, cash equivalents, and restricted cash	76				2,847
Cash, cash equivalents, and restricted cash at beginning of the period	15,184				10,151
Cash, cash equivalents, and restricted cash at end of the period	$	15,260			$	12,998

_________________

(a)   Subsidiary common stock repurchases are inclusive of employee tax withholding on stock-based compensation.

 

 

DELL TECHNOLOGIES INC. Segment Information (in millions, except percentages; unaudited; continued on next page)
	Three Months Ended
	April 30, 2021				May 1, 2020				Change
Infrastructure Solutions Group (ISG):
Net Revenue:
Servers and networking	$	4,109			$	3,758			9%
Storage	3,802				3,811				—%
Total ISG net revenue	$	7,911			$	7,569			5%
Operating Income:
ISG operating income	$	788			$	732			8%
% of ISG net revenue	10		%		10		%
% of total reportable segment operating income	29		%		35		%
Client Solutions Group (CSG):
Net Revenue:
Commercial	$	9,803			$	8,634			14%
Consumer	3,502				2,470				42%
Total CSG net revenue	$	13,305			$	11,104			20%
Operating Income:
CSG operating income	$	1,090			$	592			84%
% of CSG net revenue	8		%		5		%
% of total reportable segment operating income	40		%		28		%
VMware:
Net Revenue:
Total VMware net revenue	$	2,991			$	2,755			9%
Operating Income:
VMware operating income	$	841			$	773			9%
% of VMware net revenue	28		%		28		%
% of total reportable segment operating income	31		%		37		%

 

 

DELL TECHNOLOGIES INC. Segment Information (in millions, except percentages; unaudited; continued)
	Three Months Ended
	April 30, 2021				May 1, 2020
Reconciliation to consolidated net revenue:
Reportable segment net revenue	$	24,207			$	21,428
Other businesses (a)	290				517
Unallocated transactions (b)	2				—
Impact of purchase accounting (c)	(12)				(48)
Total consolidated net revenue	$	24,487			$	21,897
Reconciliation to consolidated operating income:
Reportable segment operating income	$	2,719			$	2,097
Other businesses (a)	(5)				65
Unallocated transactions (b)	—				(1)
Impact of purchase accounting (c)	(25)				(63)
Amortization of intangibles	(709)				(855)
Transaction-related expenses (d)	(51)				(76)
Stock-based compensation expense (e)	(435)				(370)
Other corporate expenses (f)	(119)				(95)
Total consolidated operating income	$	1,375			$	702

_________________
(a)	Secureworks, Virtustream, and Boomi constitute "Other businesses" and do not meet the requirements for a reportable segment, either individually or collectively. The results of Other businesses are not material to the Company's overall results. On September 1, 2020, the Company completed the sale of RSA Security. Prior to divestiture, RSA Security's results were included within Other businesses.
(b)	Unallocated transactions includes other corporate items that are not allocated to Dell Technologies' reportable segments.
(c)	Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.
(d)	Transaction-related expenses includes acquisition, integration, and divestiture related costs.
(e)	Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.
(f)	Other corporate expenses includes impairment charges, severance, facility action, and other costs.

 

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES

These tables present information about the Company's non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, EBITDA, and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A detailed discussion of Dell Technologies' reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures.

 

DELL TECHNOLOGIES INC. Selected Non-GAAP Financial Measures (in millions, except per share amounts and percentages; unaudited)
	Three Months Ended
	April 30, 2021				May 1, 2020				Change
Non-GAAP net revenue	$	24,499			$	21,945			12%
Non-GAAP gross margin	$	8,018			$	7,325			9%
% of non-GAAP net revenue	33		%		33		%
Non-GAAP operating expenses	$	5,304			$	5,164			3%
% of non-GAAP net revenue	22		%		24		%
Non-GAAP operating income	$	2,714			$	2,161			26%
% of non-GAAP net revenue	11		%		10		%
Non-GAAP net income	$	1,819			$	1,143			59%
% of non-GAAP net revenue	7		%		5		%
Adjusted EBITDA	$	3,235			$	2,607			24%
% of non-GAAP net revenue	13		%		12		%
Non-GAAP earnings per share - diluted	$	2.13			$	1.34			59%

 

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued on next page)
	Three Months Ended
	April 30, 2021				May 1, 2020				Change
Net revenue	$	24,487			$	21,897			12%
Non-GAAP adjustments:
Impact of purchase accounting	12				48
Non-GAAP net revenue	$	24,499			$	21,945			12%
Gross margin	$	7,658			$	6,853			12%
Non-GAAP adjustments:
Amortization of intangibles	276				372
Impact of purchase accounting	13				51
Transaction-related expenses	—				—
Stock-based compensation expense	58				40
Other corporate expenses	13				9
Non-GAAP gross margin	$	8,018			$	7,325			9%
Operating expenses	$	6,283			$	6,151			2%
Non-GAAP adjustments:
Amortization of intangibles	(433)				(483)
Impact of purchase accounting	(12)				(12)
Transaction-related expenses	(51)				(76)
Stock-based compensation expense	(377)				(330)
Other corporate expenses	(106)				(86)
Non-GAAP operating expenses	$	5,304			$	5,164			3%
Operating income	$	1,375			$	702			96%
Non-GAAP adjustments:
Amortization of intangibles	709				855
Impact of purchase accounting	25				63
Transaction-related expenses	51				76
Stock-based compensation expense	435				370
Other corporate expenses	119				95
Non-GAAP operating income	$	2,714			$	2,161			26%

 

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures (in millions, except percentages; unaudited; continued)
	Three Months Ended
	April 30, 2021				May 1, 2020				Change
Net income	$	938			$	182			415%
Non-GAAP adjustments:
Amortization of intangibles	709				855
Impact of purchase accounting	25				63
Transaction-related expenses	51				(44)
Stock-based compensation expense	435				370
Other corporate expenses	119				95
Fair value adjustments on equity investments	(157)				(94)
Aggregate adjustment for income taxes	(301)				(284)
Non-GAAP net income	$	1,819			$	1,143			59%
Net income	$	938			$	182			415%
Adjustments:
Interest and other, net	388				566
Income tax expense (benefit)	49				(46)
Depreciation and amortization	1,239				1,316
EBITDA	$	2,614			$	2,018			30%
EBITDA	$	2,614			$	2,018			30%
Adjustments:
Stock-based compensation expense	435				370
Impact of purchase accounting	16				48
Transaction-related expenses	51				76
Other corporate expenses	119				95
Adjusted EBITDA	$	3,235			$	2,607			24%

 

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures For the Three Months Ended April 30, 2021 (in millions, except per share amounts; unaudited)
	GAAP				Amortization of intangibles			Impact of purchase accounting			Transaction-related expenses			Stock-based compensation expense			Other corporate expenses			Fair value adjustments on equity investments			Aggregate adjustment for income taxes			Non-GAAP
Net income	$	938			709			25			51			435			119			(157)			(301)			$	1,819
Less: Net income attributable to non-controlling interests (a)	51				53			1			4			52			1			7			(23)			146
Net income attributable to Dell Technologies Inc. - basic	887				656			24			47			383			118			(164)			(278)			1,673
Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)	(2)																									(4)
Net income attributable to Dell Technologies Inc. - diluted	$	885																								$	1,669
Earnings per share - basic	$	1.17																								$	2.21
Earnings per share - diluted	$	1.13																								$	2.13
Weighted-average shares outstanding - basic	757																									757
Weighted-average shares outstanding - diluted	782																									782

_________________
(a)	Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc. and SecureWorks Corp. by their respective non-GAAP net income adjustments for the period presented.
(b)	Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.

 

 

DELL TECHNOLOGIES INC. Reconciliation of Selected Non-GAAP Financial Measures For the Three Months Ended May 1, 2020 (in millions, except per share amounts; unaudited)
	GAAP				Amortization of intangibles			Impact of purchase accounting			Transaction-related expenses			Stock-based compensation expense			Other corporate expenses			Fair value adjustments on equity investments			Aggregate adjustment for income taxes			Non-GAAP
Net income	$	182			855			63			(44)			370			95			(94)			(284)			$	1,143
Less: Net income attributable to non-controlling interests (a)	39				60			3			7			54			—			(1)			(35)			127
Net income attributable to Dell Technologies Inc. - basic	143				795			60			(51)			316			95			(93)			(249)			1,016
Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. (b)	(2)																									(4)
Net income attributable to Dell Technologies Inc. - diluted	$	141																								$	1,012
Earnings per share - basic	$	0.19																								$	1.37
Earnings per share - diluted	$	0.19																								$	1.34
Weighted-average shares outstanding - basic	740																									740
Weighted-average shares outstanding - diluted	755																									755

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(a)	Net income attributable to non-controlling interests is calculated by multiplying the minority interest percentage of VMware, Inc. and SecureWorks Corp. by their respective non-GAAP net income adjustments for the period presented.
(b)	Incremental dilution from VMware, Inc. attributable to Dell Technologies Inc. represents the impact of VMware, Inc.'s dilutive securities on the diluted earnings per share of Dell Technologies Inc. and is calculated by multiplying the difference between VMware, Inc.'s basic and diluted earnings per share by the number of shares of VMware, Inc. common stock held by Dell Technologies Inc.

 

 

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SOURCE Dell Technologies

FAQ

What was Dell's revenue for the first quarter of fiscal 2022?

Dell's revenue for Q1 fiscal 2022 was $24.5 billion, representing a 12% increase year-over-year.

How much did Dell's diluted earnings per share increase in Q1 fiscal 2022?

Dell's diluted earnings per share increased 495% to $1.13 in Q1 fiscal 2022.

What were the operating income figures for Dell in Q1 fiscal 2022?

Dell reported an operating income of $1.4 billion for Q1 fiscal 2022, up 96% compared to the previous year.

What is Dell's cash position as of Q1 fiscal 2022?

As of Q1 fiscal 2022, Dell held cash and investments totaling $15.9 billion.

When will Dell Technologies hold a conference call to discuss their Q1 performance?

Dell Technologies will hold a conference call on May 27, 2021, at 4:30 p.m. CDT to discuss their Q1 performance.