ROUND ROCK, Texas, Feb. 25, 2021 /PRNewswire/ --
News summary
- Record full-year revenue of $94.2
billion
- Record full-year operating income of $5.1 billion and record non-GAAP operating income
of $10.8 billion
- Record cash flow from operations of $11.4 billion
- Record Client Solutions Group shipments, revenue and operating
income
Full story
Dell Technologies (NYSE: DELL) announces
financial results for its fiscal 2021 fourth quarter and full
year.
Full-year revenue was a record $94.2
billion, up 2% over the prior year. The company generated
record operating income of $5.1
billion, a 96% increase over the prior year, and record
non-GAAP operating income of $10.8
billion, up 6%. For the full year, net income was
$3.5 billion and non-GAAP net income
was $6.8 billion. Cash flow from
operations was a record $11.4
billion. Full-year diluted earnings per share was
$4.22, and non-GAAP diluted earnings
per share was $8.00.
Fourth quarter revenue was up 9% to $26.1
billion. The company generated operating income of
$2.2 billion, a 204% increase over
the same period in the prior year, and non-GAAP operating income of
$3.3 billion, up 19%. Net income was
$1.3 billion, non-GAAP net income was
$2.3 billion and adjusted EBITDA was
$3.8 billion. Cash flow from
operations was $5.9 billion. Fourth
quarter diluted earnings per share was $1.57 and non-GAAP diluted earnings per share was
$2.70.
"In the past year, our team rallied to support our customers and
partners worldwide as technology played a central role in keeping
our society, economy and lives moving forward," said Jeff Clarke, chief operating officer, Dell
Technologies. "We generated record revenue of $94.2 billion this year by helping customers
adapt to new work-and-learn-from-anywhere realities and are in an
advantaged position to capitalize on the projected mid-single
digits growth in IT spending in 2021."
Fourth Quarter and
Full-Year Fiscal 2021 Financial Results
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
(in millions, except
per share amounts and percentages; unaudited)
|
Total net
revenue
|
$
|
26,112
|
|
|
$
|
24,032
|
|
|
9%
|
|
$
|
94,224
|
|
|
$
|
92,154
|
|
|
2%
|
Operating
income
|
$
|
2,177
|
|
|
$
|
717
|
|
|
204%
|
|
$
|
5,144
|
|
|
$
|
2,622
|
|
|
96%
|
Net income
|
$
|
1,343
|
|
|
$
|
416
|
|
|
223%
|
|
$
|
3,505
|
|
|
$
|
5,529
|
|
|
(37)%
|
Earnings per share -
diluted
|
$
|
1.57
|
|
|
$
|
0.54
|
|
|
191%
|
|
$
|
4.22
|
|
|
$
|
6.03
|
|
|
(30)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net
revenue
|
$
|
26,148
|
|
|
$
|
24,129
|
|
|
8%
|
|
$
|
94,389
|
|
|
$
|
92,501
|
|
|
2%
|
Non-GAAP operating
income
|
$
|
3,294
|
|
|
$
|
2,767
|
|
|
19%
|
|
$
|
10,798
|
|
|
$
|
10,148
|
|
|
6%
|
Non-GAAP net
income
|
$
|
2,288
|
|
|
$
|
1,684
|
|
|
36%
|
|
$
|
6,763
|
|
|
$
|
6,089
|
|
|
11%
|
Adjusted
EBITDA
|
$
|
3,809
|
|
|
$
|
3,201
|
|
|
19%
|
|
$
|
12,747
|
|
|
$
|
11,787
|
|
|
8%
|
Non-GAAP earnings per
share - diluted
|
$
|
2.70
|
|
|
$
|
2.00
|
|
|
35%
|
|
$
|
8.00
|
|
|
$
|
7.35
|
|
|
9%
|
|
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 fiscal year with cash and
investments of $15.8 billion and
delivered on its fiscal 2021 core debt paydown target of
$5.5 billion. The company ended the
year with total deferred revenue of $30.8
billion, up $3 billion
year-over-year. Recurring revenue, which includes deferred revenue
amortization, utility and as-a-Service models was approximately
$6 billion for the quarter, up 8%
year-over-year, as the company's aaS models give customers greater
flexibility to scale IT to meet business needs and budgets.
"This year's strong results are a testament to the flexibility
of Dell Technologies' business model and the resilience of our
team," said Tom Sweet, chief
financial officer, Dell Technologies. "Focus on our people,
customers, innovation and execution resulted in record cash flow
from operations of $11.4 billion, and
we'll continue to deliver differentiated value for our all
stakeholders."
Operating segments summary
Client Solutions
Group delivered record results, with revenue for the
fourth quarter of $13.8 billion, up
17% year over year. This was driven by $9.9
billion in commercial revenue – a 16% increase – and
$3.8 billion in consumer revenue – a
19% increase. Operating income was $1.0
billion or approximately 7.6% of Client Solutions Group
revenue. For the full year, the Client Solutions Group delivered
record revenue of $48.4 billion, up
5% versus the prior year. Client Solutions Group full-year
operating income was $3.4 billion, a
7% increase.
Key highlights:
- Shipped a record 50.3 million units during the 2020 calendar
year1, an 8% increase year-over-year
- Only big 3 vendor to gain Commercial PC share in calendar year
20201
- Continued to see strong growth in Latitude and Precision
notebooks and Commercial Chromebooks
Infrastructure Solutions Group revenue for the
fourth quarter was $8.8 billion, flat
year-over-year. Storage revenue was $4.4
billion – down 2% – while servers and networking
revenue was $4.4 billion – up 3%.
Operating income was a record $1.2
billion or approximately 13.5% of Infrastructure Solutions
Group revenue. For the full year, revenue was $32.6 billion, with operating income of
$3.8 billion.
Key highlights:
- PowerStore orders up 4X quarter-over-quarter, as customers
embrace the next generation of modern data center technology and
applications
- Strong year-over-year growth in PowerMax, HCI and PowerProtect
Data Domain
- Launch of new HCI, cloud, storage and data protection
integration with latest VMware releases to help customers innovate
across edge locations, data centers and hybrid clouds
VMware revenue for the fourth quarter was
$3.3 billion, with operating income
of $1.1 billion driven by broad-based
strength across a diverse product portfolio. For the full
year, VMware delivered $11.9
billion in revenue and $3.6
billion in operating income.
Dell Technologies World
Join us May 5 – May 6 for
the Dell Technologies World Experience, the company's flagship
event that brings together latest emerging trends, technology and
gurus. During the event, we will demonstrate to customers and
partners the connected ecosystem of IT infrastructure,
applications, devices and security – and our new APEX as-a-Service
portfolio and simplified IT consumption experience that gives
customers greater flexibility to scale IT to meet business needs
and budgets. Register here.
Conference call information
As previously announced,
the Company will hold a conference call to discuss its fiscal 2021
fourth quarter/full year performance and financial guidance,
February 25, 2021 at 4:30 p.m. CST. 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.
1 IDC WW Personal Computing Device
Tracker CY20Q4, WW commercial PC, on a Y/Y basis
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:
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,
including as a result of the COVID-19 pandemic; 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 and services; Dell Technologies'
foreign operations and ability to generate substantial non-U.S. net
revenue; Dell Technologies' product, 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; weak economic conditions and
additional regulation including tariffs and other effects of trade
regulation; counterparty default risks; the loss by Dell
Technologies of any services contracts with its customers,
including government contracts, and its ability to perform such
contracts at its estimated costs; 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; infrastructure
disruptions, cyberattacks, or other data security breaches; 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; increased costs and additional regulations
and requirements as a result of Dell Technologies' operation as a
public company; Dell Technologies' ability to develop and maintain
effective internal control over financial reporting; compliance
requirements of changing environmental and safety laws; the effect
of armed hostilities, terrorism, natural disasters, and public
health issues, including as a result of the COVID-19 pandemic; Dell
Technologies' substantial level of indebtedness; the impact of the
financial performance of VMware, Inc.; and the market volatility of
Dell Technologies' pension plan assets.
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 31, 2020, 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 (Loss) and Related Financial
Highlights
|
(in millions,
except percentages; unaudited)
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
Net revenue
(a):
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
$
|
19,784
|
|
|
$
|
18,153
|
|
|
9%
|
|
$
|
69,911
|
|
|
$
|
69,918
|
|
|
—%
|
Services
|
6,328
|
|
|
5,879
|
|
|
8%
|
|
24,313
|
|
|
22,236
|
|
|
9%
|
Total net
revenue
|
26,112
|
|
|
24,032
|
|
|
9%
|
|
94,224
|
|
|
92,154
|
|
|
2%
|
Cost of net
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Products
|
15,424
|
|
|
13,999
|
|
|
10%
|
|
55,347
|
|
|
54,525
|
|
|
2%
|
Services
|
2,541
|
|
|
2,349
|
|
|
8%
|
|
9,460
|
|
|
8,696
|
|
|
9%
|
Total
cost of net revenue
|
17,965
|
|
|
16,348
|
|
|
10%
|
|
64,807
|
|
|
63,221
|
|
|
3%
|
Gross
margin
|
8,147
|
|
|
7,684
|
|
|
6%
|
|
29,417
|
|
|
28,933
|
|
|
2%
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general, and
administrative
|
4,579
|
|
|
5,642
|
|
|
(19)%
|
|
18,998
|
|
|
21,319
|
|
|
(11)%
|
Research and
development
|
1,391
|
|
|
1,325
|
|
|
5%
|
|
5,275
|
|
|
4,992
|
|
|
6%
|
Total
operating expenses
|
5,970
|
|
|
6,967
|
|
|
(14)%
|
|
24,273
|
|
|
26,311
|
|
|
(8)%
|
Operating
income
|
2,177
|
|
|
717
|
|
|
204%
|
|
5,144
|
|
|
2,622
|
|
|
96%
|
Interest and other,
net
|
(545)
|
|
|
(626)
|
|
|
13%
|
|
(1,474)
|
|
|
(2,626)
|
|
|
44%
|
Income (loss) before
income taxes
|
1,632
|
|
|
91
|
|
|
NM
|
|
3,670
|
|
|
(4)
|
|
|
NM
|
Income tax provision
(benefit)
|
289
|
|
|
(325)
|
|
|
189%
|
|
165
|
|
|
(5,533)
|
|
|
103%
|
Net income
|
1,343
|
|
|
416
|
|
|
223%
|
|
3,505
|
|
|
5,529
|
|
|
(37)%
|
Less: Net income
attributable to non-controlling interests
|
116
|
|
|
8
|
|
|
NM
|
|
255
|
|
|
913
|
|
|
(72)%
|
Net income
attributable to Dell Technologies Inc.
|
$
|
1,227
|
|
|
$
|
408
|
|
|
201%
|
|
$
|
3,250
|
|
|
$
|
4,616
|
|
|
(30)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of
Total Net Revenue:
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
31
|
%
|
|
32
|
%
|
|
|
|
31
|
%
|
|
31
|
%
|
|
|
Selling, general, and
administrative
|
18
|
%
|
|
23
|
%
|
|
|
|
20
|
%
|
|
23
|
%
|
|
|
Research and
development
|
5
|
%
|
|
6
|
%
|
|
|
|
6
|
%
|
|
5
|
%
|
|
|
Operating
expenses
|
23
|
%
|
|
29
|
%
|
|
|
|
26
|
%
|
|
29
|
%
|
|
|
Operating
income
|
8
|
%
|
|
3
|
%
|
|
|
|
5
|
%
|
|
3
|
%
|
|
|
Income (loss) before
income taxes
|
6
|
%
|
|
—
|
%
|
|
|
|
4
|
%
|
|
—
|
%
|
|
|
Net income
|
5
|
%
|
|
2
|
%
|
|
|
|
4
|
%
|
|
6
|
%
|
|
|
Income tax
rate
|
17.7
|
%
|
|
-357.1
|
%
|
|
|
|
4.5
|
%
|
|
138325.0
|
%
|
|
|
|
____________________
|
(a)
|
During Fiscal 2020,
the Company reclassified revenue associated with certain service
and software-as-a-service offerings from product revenue to
services revenue. There was no change to total revenue as a result
of the reclassifications.
|
DELL TECHNOLOGIES
INC.
|
Consolidated
Statements of Financial Position
|
(in millions;
unaudited)
|
|
|
January 29,
2021
|
|
January 31,
2020
|
ASSETS
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
14,201
|
|
|
$
|
9,302
|
|
Accounts receivable,
net
|
12,788
|
|
|
12,484
|
|
Short-term financing
receivables, net
|
5,155
|
|
|
4,895
|
|
Inventories,
net
|
3,402
|
|
|
3,281
|
|
Other current
assets
|
8,021
|
|
|
6,906
|
|
Total current
assets
|
43,567
|
|
|
36,868
|
|
Property, plant, and
equipment, net
|
6,431
|
|
|
6,055
|
|
Long-term
investments
|
1,624
|
|
|
864
|
|
Long-term financing
receivables, net
|
5,339
|
|
|
4,848
|
|
Goodwill
|
40,829
|
|
|
41,691
|
|
Intangible assets,
net
|
14,429
|
|
|
18,107
|
|
Other non-current
assets
|
11,196
|
|
|
10,428
|
|
Total
assets
|
$
|
123,415
|
|
|
$
|
118,861
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE SHARES, AND STOCKHOLDERS' EQUITY
|
Current
liabilities:
|
|
|
|
Short-term
debt
|
$
|
6,362
|
|
|
$
|
7,737
|
|
Accounts
payable
|
21,696
|
|
|
20,065
|
|
Accrued and
other
|
9,549
|
|
|
9,773
|
|
Short-term deferred
revenue
|
16,525
|
|
|
14,881
|
|
Total current
liabilities
|
54,132
|
|
|
52,456
|
|
Long-term
debt
|
41,622
|
|
|
44,319
|
|
Long-term deferred
revenue
|
14,276
|
|
|
12,919
|
|
Other non-current
liabilities
|
5,360
|
|
|
5,383
|
|
Total
liabilities
|
115,390
|
|
|
115,077
|
|
Redeemable
shares
|
472
|
|
|
629
|
|
Stockholders' equity
(deficit):
|
|
|
|
Total Dell
Technologies Inc. stockholders' equity (deficit)
|
2,479
|
|
|
(1,574)
|
|
Non-controlling
interests
|
5,074
|
|
|
4,729
|
|
Total stockholders'
equity
|
7,553
|
|
|
3,155
|
|
Total liabilities,
redeemable shares, and stockholders' equity
|
$
|
123,415
|
|
|
$
|
118,861
|
|
DELL TECHNOLOGIES
INC.
|
Condensed
Consolidated Statements of Cash Flows
|
(in millions;
unaudited)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
January 29,
2021
|
|
January 31,
2020
|
|
January 29,
2021
|
|
January 31,
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
Net income
|
$
|
1,343
|
|
|
$
|
416
|
|
|
$
|
3,505
|
|
|
$
|
5,529
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
4,534
|
|
|
3,092
|
|
|
7,902
|
|
|
3,762
|
|
Change in cash from
operating activities
|
5,877
|
|
|
3,508
|
|
|
11,407
|
|
|
9,291
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
Purchases of
investments
|
(42)
|
|
|
(39)
|
|
|
(338)
|
|
|
(181)
|
|
Maturities and sales
of investments
|
71
|
|
|
48
|
|
|
169
|
|
|
497
|
|
Capital expenditures
and capitalized software development costs
|
(498)
|
|
|
(700)
|
|
|
(2,082)
|
|
|
(2,576)
|
|
Acquisition of
businesses and assets, net
|
(19)
|
|
|
(26)
|
|
|
(424)
|
|
|
(2,463)
|
|
Divestitures of
businesses and assets, net
|
—
|
|
|
—
|
|
|
2,187
|
|
|
(3)
|
|
Other
|
2
|
|
|
13
|
|
|
28
|
|
|
40
|
|
Change in cash from
investing activities
|
(486)
|
|
|
(704)
|
|
|
(460)
|
|
|
(4,686)
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
Proceeds from the
issuance of common stock
|
63
|
|
|
207
|
|
|
452
|
|
|
658
|
|
Repurchases of parent
common stock
|
(1)
|
|
|
(2)
|
|
|
(241)
|
|
|
(8)
|
|
Repurchases of
subsidiary common stock (a)
|
(473)
|
|
|
(1,861)
|
|
|
(1,363)
|
|
|
(3,547)
|
|
Proceeds from
debt
|
1,619
|
|
|
2,825
|
|
|
16,391
|
|
|
20,481
|
|
Repayments of
debt
|
(3,675)
|
|
|
(3,169)
|
|
|
(20,919)
|
|
|
(22,117)
|
|
Other
|
—
|
|
|
(4)
|
|
|
(270)
|
|
|
(71)
|
|
Change in cash from
financing activities
|
(2,467)
|
|
|
(2,004)
|
|
|
(5,950)
|
|
|
(4,604)
|
|
Effect of exchange
rate changes on cash, cash equivalents, and restricted
cash
|
103
|
|
|
10
|
|
|
36
|
|
|
(90)
|
|
Change in cash, cash
equivalents, and restricted cash
|
3,027
|
|
|
810
|
|
|
5,033
|
|
|
(89)
|
|
Cash, cash
equivalents, and restricted cash at beginning of the
period
|
12,157
|
|
|
9,341
|
|
|
10,151
|
|
|
10,240
|
|
Cash, cash
equivalents, and restricted cash at end of the period
|
$
|
15,184
|
|
|
$
|
10,151
|
|
|
$
|
15,184
|
|
|
$
|
10,151
|
|
|
_________________
|
(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
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
Infrastructure
Solutions Group (ISG):
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Servers and
networking
|
$
|
4,379
|
|
|
$
|
4,269
|
|
|
3%
|
|
$
|
16,497
|
|
|
$
|
17,127
|
|
|
(4)%
|
Storage
|
4,409
|
|
|
4,487
|
|
|
(2)%
|
|
16,091
|
|
|
16,842
|
|
|
(4)%
|
Total ISG net
revenue
|
$
|
8,788
|
|
|
$
|
8,756
|
|
|
—%
|
|
$
|
32,588
|
|
|
$
|
33,969
|
|
|
(4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
ISG operating
income
|
$
|
1,189
|
|
|
$
|
1,112
|
|
|
7%
|
|
$
|
3,776
|
|
|
$
|
4,001
|
|
|
(6)%
|
% of ISG net
revenue
|
14
|
%
|
|
13
|
%
|
|
|
|
12
|
%
|
|
12
|
%
|
|
|
% of total
reportable segment operating income
|
36
|
%
|
|
40
|
%
|
|
|
|
35
|
%
|
|
39
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Client Solutions
Group (CSG):
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$
|
9,940
|
|
|
$
|
8,563
|
|
|
16%
|
|
$
|
35,396
|
|
|
$
|
34,277
|
|
|
3%
|
Consumer
|
3,822
|
|
|
3,207
|
|
|
19%
|
|
12,959
|
|
|
11,561
|
|
|
12%
|
Total CSG net
revenue
|
$
|
13,762
|
|
|
$
|
11,770
|
|
|
17%
|
|
$
|
48,355
|
|
|
$
|
45,838
|
|
|
5%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
CSG operating
income
|
$
|
1,043
|
|
|
$
|
624
|
|
|
67%
|
|
$
|
3,352
|
|
|
$
|
3,138
|
|
|
7%
|
% of CSG net
revenue
|
8
|
%
|
|
5
|
%
|
|
|
|
7
|
%
|
|
7
|
%
|
|
|
% of total
reportable segment operating income
|
32
|
%
|
|
23
|
%
|
|
|
|
31
|
%
|
|
31
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
VMware
(a):
|
Net
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Total VMware net
revenue
|
$
|
3,317
|
|
|
$
|
3,126
|
|
|
6%
|
|
$
|
11,873
|
|
|
$
|
10,905
|
|
|
9%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Income:
|
|
|
|
|
|
|
|
|
|
|
|
VMware operating
income
|
$
|
1,067
|
|
|
$
|
1,026
|
|
|
4%
|
|
$
|
3,571
|
|
|
$
|
3,081
|
|
|
16%
|
% of VMware net
revenue
|
32
|
%
|
|
33
|
%
|
|
|
|
30
|
%
|
|
28
|
%
|
|
|
% of total
reportable segment operating income
|
32
|
%
|
|
37
|
%
|
|
|
|
33
|
%
|
|
30
|
%
|
|
|
|
____________________
|
(a)
|
During Fiscal 2020,
the Company reclassified Pivotal operating results from Other
businesses to the VMware reportable segment. There was no change to
consolidated results as a result of the
reclassification.
|
DELL TECHNOLOGIES
INC.
|
Segment
Information
|
(in millions,
except percentages; unaudited; continued)
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
January 29,
2021
|
|
January 31,
2020
|
|
January 29,
2021
|
|
January 31,
2020
|
Reconciliation to
consolidated net revenue:
|
|
|
|
|
|
|
Reportable segment net
revenue (a)
|
$
|
25,867
|
|
|
$
|
23,652
|
|
|
$
|
92,816
|
|
|
$
|
90,712
|
|
Other businesses (a)
(b)
|
279
|
|
|
477
|
|
|
1,567
|
|
|
1,788
|
|
Unallocated
transactions (c)
|
2
|
|
|
—
|
|
|
6
|
|
|
1
|
|
Impact of purchase
accounting (d)
|
(36)
|
|
|
(97)
|
|
|
(165)
|
|
|
(347)
|
|
Total consolidated net
revenue
|
$
|
26,112
|
|
|
$
|
24,032
|
|
|
$
|
94,224
|
|
|
$
|
92,154
|
|
|
|
|
|
|
|
|
|
Reconciliation to
consolidated operating income:
|
|
|
|
|
Reportable segment
operating income (a)
|
$
|
3,299
|
|
|
$
|
2,762
|
|
|
$
|
10,699
|
|
|
$
|
10,220
|
|
Other businesses (a)
(b)
|
(6)
|
|
|
5
|
|
|
99
|
|
|
(43)
|
|
Unallocated
transactions (c)
|
1
|
|
|
—
|
|
|
—
|
|
|
(29)
|
|
Impact of purchase
accounting (d)
|
(48)
|
|
|
(112)
|
|
|
(213)
|
|
|
(411)
|
|
Amortization of
intangibles
|
(846)
|
|
|
(1,074)
|
|
|
(3,393)
|
|
|
(4,408)
|
|
Transaction-related
expenses (e)
|
(46)
|
|
|
(120)
|
|
|
(257)
|
|
|
(285)
|
|
Stock-based
compensation expense (f)
|
(390)
|
|
|
(376)
|
|
|
(1,609)
|
|
|
(1,262)
|
|
Other corporate
expenses (g)
|
213
|
|
|
(368)
|
|
|
(182)
|
|
|
(1,160)
|
|
Total consolidated
operating income
|
$
|
2,177
|
|
|
$
|
717
|
|
|
$
|
5,144
|
|
|
$
|
2,622
|
|
|
_________________
|
(a)
|
During Fiscal 2020,
the Company reclassified Pivotal operating results from Other
businesses to the VMware reportable segment.
|
(b)
|
Secureworks,
Virtustream, and Boomi constitute "Other businesses" and do not
meet the requirements for a reportable segment, either individually
or collectively. The Company completed the sale of RSA Security on
September 1, 2020; prior to divestiture, RSA Security's operating
results were also included in Other Businesses and did not meet the
requirements for a reportable segment. The results of Other
businesses are not material to the Company's overall
results.
|
(c)
|
Unallocated
transactions includes other corporate items that are not allocated
to Dell Technologies' reportable segments.
|
(d)
|
Impact of purchase
accounting includes non-cash purchase accounting adjustments that
are primarily related to the EMC merger transaction.
|
(e)
|
Transaction-related
expenses includes acquisition, integration, and divestiture related
costs.
|
(f)
|
Stock-based
compensation expense consists of equity awards granted based on the
estimated fair value of those awards at grant date.
|
(g)
|
Other corporate
expenses includes impairment charges, severance, facility action,
and other costs. The fourth quarter of Fiscal 2021 includes
derecognition of a $237 million previously accrued litigation loss
as a result of a jury verdict in January 2020 against VMware, Inc.
in a patent litigation matter. On December 21, 2020, the United
States District Court of the District of Delaware set aside the
jury verdict and ordered a new trial.
|
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
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
Non-GAAP net
revenue
|
$
|
26,148
|
|
|
$
|
24,129
|
|
|
8%
|
|
$
|
94,389
|
|
|
$
|
92,501
|
|
|
2%
|
Non-GAAP gross
margin
|
$
|
8,624
|
|
|
$
|
8,375
|
|
|
3%
|
|
$
|
31,346
|
|
|
$
|
31,563
|
|
|
(1)%
|
% of non-GAAP net
revenue
|
33
|
%
|
|
35
|
%
|
|
|
|
33
|
%
|
|
34
|
%
|
|
|
Non-GAAP operating
expenses
|
$
|
5,330
|
|
|
$
|
5,608
|
|
|
(5)%
|
|
$
|
20,548
|
|
|
$
|
21,415
|
|
|
(4)%
|
% of non-GAAP net
revenue
|
20
|
%
|
|
23
|
%
|
|
|
|
22
|
%
|
|
23
|
%
|
|
|
Non-GAAP operating
income
|
$
|
3,294
|
|
|
$
|
2,767
|
|
|
19%
|
|
$
|
10,798
|
|
|
$
|
10,148
|
|
|
6%
|
% of non-GAAP net
revenue
|
13
|
%
|
|
11
|
%
|
|
|
|
11
|
%
|
|
11
|
%
|
|
|
Non-GAAP net
income
|
$
|
2,288
|
|
|
$
|
1,684
|
|
|
36%
|
|
$
|
6,763
|
|
|
$
|
6,089
|
|
|
11%
|
% of non-GAAP net
revenue
|
9
|
%
|
|
7
|
%
|
|
|
|
7
|
%
|
|
7
|
%
|
|
|
Adjusted
EBITDA
|
$
|
3,809
|
|
|
$
|
3,201
|
|
|
19%
|
|
$
|
12,747
|
|
|
$
|
11,787
|
|
|
8%
|
% of non-GAAP net
revenue
|
15
|
%
|
|
13
|
%
|
|
|
|
14
|
%
|
|
13
|
%
|
|
|
Non-GAAP earnings per
share - diluted
|
$
|
2.70
|
|
|
$
|
2.00
|
|
|
35%
|
|
$
|
8.00
|
|
|
$
|
7.35
|
|
|
9%
|
DELL TECHNOLOGIES
INC.
|
Reconciliation of
Selected Non-GAAP Financial Measures
|
(in millions,
except percentages; unaudited; continued on next
page)
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
Net
revenue
|
$
|
26,112
|
|
|
$
|
24,032
|
|
|
9%
|
|
$
|
94,224
|
|
|
$
|
92,154
|
|
|
2%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Impact of purchase
accounting
|
36
|
|
|
97
|
|
|
|
|
165
|
|
|
347
|
|
|
|
Non-GAAP net
revenue
|
$
|
26,148
|
|
|
$
|
24,129
|
|
|
8%
|
|
$
|
94,389
|
|
|
$
|
92,501
|
|
|
2%
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
margin
|
$
|
8,147
|
|
|
$
|
7,684
|
|
|
6%
|
|
$
|
29,417
|
|
|
$
|
28,933
|
|
|
2%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles
|
380
|
|
|
526
|
|
|
|
|
1,502
|
|
|
2,081
|
|
|
|
Impact of
purchase accounting
|
37
|
|
|
98
|
|
|
|
|
171
|
|
|
353
|
|
|
|
Transaction-related expenses
|
—
|
|
|
—
|
|
|
|
|
—
|
|
|
(5)
|
|
|
|
Stock-based
compensation expense
|
53
|
|
|
38
|
|
|
|
|
194
|
|
|
129
|
|
|
|
Other
corporate expenses
|
7
|
|
|
29
|
|
|
|
|
62
|
|
|
72
|
|
|
|
Non-GAAP gross
margin
|
$
|
8,624
|
|
|
$
|
8,375
|
|
|
3%
|
|
$
|
31,346
|
|
|
$
|
31,563
|
|
|
(1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
$
|
5,970
|
|
|
$
|
6,967
|
|
|
(14)%
|
|
$
|
24,273
|
|
|
$
|
26,311
|
|
|
(8)%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
(466)
|
|
|
(548)
|
|
|
|
|
(1,891)
|
|
|
(2,327)
|
|
|
|
Impact of
purchase accounting
|
(11)
|
|
|
(14)
|
|
|
|
|
(42)
|
|
|
(58)
|
|
|
|
Transaction-related expenses
|
(46)
|
|
|
(120)
|
|
|
|
|
(257)
|
|
|
(290)
|
|
|
|
Stock-based
compensation expense
|
(337)
|
|
|
(338)
|
|
|
|
|
(1,415)
|
|
|
(1,133)
|
|
|
|
Other corporate
expenses
|
220
|
|
|
(339)
|
|
|
|
|
(120)
|
|
|
(1,088)
|
|
|
|
Non-GAAP operating
expenses
|
$
|
5,330
|
|
|
$
|
5,608
|
|
|
(5)%
|
|
$
|
20,548
|
|
|
$
|
21,415
|
|
|
(4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
$
|
2,177
|
|
|
$
|
717
|
|
|
204%
|
|
$
|
5,144
|
|
|
$
|
2,622
|
|
|
96%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
846
|
|
|
1,074
|
|
|
|
|
3,393
|
|
|
4,408
|
|
|
|
Impact of
purchase accounting
|
48
|
|
|
112
|
|
|
|
|
213
|
|
|
411
|
|
|
|
Transaction-related expenses
|
46
|
|
|
120
|
|
|
|
|
257
|
|
|
285
|
|
|
|
Stock-based
compensation expense
|
390
|
|
|
376
|
|
|
|
|
1,609
|
|
|
1,262
|
|
|
|
Other corporate
expenses
|
(213)
|
|
|
368
|
|
|
|
|
182
|
|
|
1,160
|
|
|
|
Non-GAAP operating
income
|
$
|
3,294
|
|
|
$
|
2,767
|
|
|
19%
|
|
$
|
10,798
|
|
|
$
|
10,148
|
|
|
6%
|
DELL
TECHNOLOGIES INC.
|
Reconciliation of
Selected Non-GAAP Financial Measures
|
(in millions,
except percentages; unaudited; continued)
|
|
|
Three Months
Ended
|
|
|
|
Fiscal Year
Ended
|
|
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
|
January 29,
2021
|
|
January 31,
2020
|
|
Change
|
Net income
|
$
|
1,343
|
|
|
$
|
416
|
|
|
223%
|
|
$
|
3,505
|
|
|
$
|
5,529
|
|
|
(37)%
|
Non-GAAP
adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles
|
846
|
|
|
1,074
|
|
|
|
|
3,393
|
|
|
4,408
|
|
|
|
Impact of
purchase accounting
|
48
|
|
|
112
|
|
|
|
|
213
|
|
|
411
|
|
|
|
Transaction-related expenses
|
46
|
|
|
120
|
|
|
|
|
(201)
|
|
|
285
|
|
|
|
Stock-based
compensation expense
|
390
|
|
|
376
|
|
|
|
|
1,609
|
|
|
1,262
|
|
|
|
Other corporate
expenses
|
(213)
|
|
|
368
|
|
|
|
|
74
|
|
|
1,160
|
|
|
|
Fair value
adjustments on equity investments
|
9
|
|
|
(34)
|
|
|
|
|
(582)
|
|
|
(194)
|
|
|
|
Aggregate
adjustment for income taxes
|
(181)
|
|
|
(748)
|
|
|
|
|
(1,248)
|
|
|
(6,772)
|
|
|
|
Non-GAAP net
income
|
$
|
2,288
|
|
|
$
|
1,684
|
|
|
36%
|
|
$
|
6,763
|
|
|
$
|
6,089
|
|
|
11%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
1,343
|
|
|
$
|
416
|
|
|
223%
|
|
$
|
3,505
|
|
|
$
|
5,529
|
|
|
(37)%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Interest and
other, net
|
545
|
|
|
626
|
|
|
|
|
1,474
|
|
|
2,626
|
|
|
|
Income tax
provision (benefit)
|
289
|
|
|
(325)
|
|
|
|
|
165
|
|
|
(5,533)
|
|
|
|
Depreciation
and amortization
|
1,373
|
|
|
1,535
|
|
|
|
|
5,390
|
|
|
6,143
|
|
|
|
EBITDA
|
$
|
3,550
|
|
|
$
|
2,252
|
|
|
58%
|
|
$
|
10,534
|
|
|
$
|
8,765
|
|
|
20%
|
|
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
$
|
3,550
|
|
|
$
|
2,252
|
|
|
58%
|
|
$
|
10,534
|
|
|
$
|
8,765
|
|
|
20%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense
|
390
|
|
|
376
|
|
|
|
|
1,609
|
|
|
1,262
|
|
|
|
Impact of
purchase accounting
|
36
|
|
|
96
|
|
|
|
|
165
|
|
|
347
|
|
|
|
Transaction-related expenses
|
46
|
|
|
120
|
|
|
|
|
257
|
|
|
285
|
|
|
|
Other corporate
expenses
|
(213)
|
|
|
357
|
|
|
|
|
182
|
|
|
1,128
|
|
|
|
Adjusted
EBITDA
|
$
|
3,809
|
|
|
$
|
3,201
|
|
|
19%
|
|
$
|
12,747
|
|
|
$
|
11,787
|
|
|
8%
|
DELL TECHNOLOGIES
INC.
|
Reconciliation of
Selected Non-GAAP Financial Measures
|
For the Three
Months Ended January 29, 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
|
$
|
1,343
|
|
|
846
|
|
|
48
|
|
|
46
|
|
|
390
|
|
|
(213)
|
|
|
9
|
|
|
(181)
|
|
|
$
|
2,288
|
|
Less: Net income
attributable to non-controlling interests (a)
|
116
|
|
|
62
|
|
|
3
|
|
|
6
|
|
|
51
|
|
|
(47)
|
|
|
4
|
|
|
(10)
|
|
|
185
|
|
Net income
attributable to Dell Technologies Inc. - basic
|
1,227
|
|
|
784
|
|
|
45
|
|
|
40
|
|
|
339
|
|
|
(166)
|
|
|
5
|
|
|
(171)
|
|
|
2,103
|
|
Incremental dilution
from VMware, Inc. attributable to Dell Technologies Inc.
(b)
|
(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(5)
|
|
Net income
attributable to Dell Technologies Inc. - diluted
|
$
|
1,222
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
1.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2.80
|
|
Earnings per share -
diluted
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
750
|
|
Weighted-average
shares outstanding - diluted
|
776
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
776
|
|
|
_________________
|
(a)
|
Net income
attributable to non-controlling interests is calculated by
multiplying the minority interest percentage of VMware, Inc. and
SecureWorks Corp. by their 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 Fiscal
Year Ended January 29, 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
|
$
|
3,505
|
|
|
3,393
|
|
|
213
|
|
|
(201)
|
|
|
1,609
|
|
|
74
|
|
|
(582)
|
|
|
(1,248)
|
|
|
$
|
6,763
|
|
Less: Net income
attributable to non-controlling interests (a)
|
255
|
|
|
249
|
|
|
13
|
|
|
26
|
|
|
223
|
|
|
(38)
|
|
|
(31)
|
|
|
(87)
|
|
|
610
|
|
Net income
attributable to Dell Technologies Inc. - basic
|
3,250
|
|
|
$
|
3,144
|
|
|
$
|
200
|
|
|
$
|
(227)
|
|
|
$
|
1,386
|
|
|
$
|
112
|
|
|
$
|
(551)
|
|
|
$
|
(1,161)
|
|
|
6,153
|
|
Incremental dilution
from VMware, Inc. attributable to Dell Technologies Inc.
(b)
|
(13)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(20)
|
|
Net income
attributable to Dell Technologies Inc. - diluted
|
$
|
3,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,133
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
4.37
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8.27
|
|
Earnings per share -
diluted
|
$
|
4.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
744
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
744
|
|
Weighted-average
shares outstanding - diluted
|
767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
_________________
|
(a)
|
Net income
attributable to non-controlling interests is calculated by
multiplying the minority interest percentage of VMware, Inc. and
SecureWorks Corp. by their 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 January 31, 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
|
$
|
416
|
|
|
1,074
|
|
|
112
|
|
|
120
|
|
|
376
|
|
|
368
|
|
|
(34)
|
|
|
(748)
|
|
|
$
|
1,684
|
|
Less: Net income
attributable to non-controlling interests (a)
|
8
|
|
|
76
|
|
|
6
|
|
|
32
|
|
|
65
|
|
|
45
|
|
|
—
|
|
|
(61)
|
|
|
171
|
|
Net income
attributable to Dell Technologies Inc. - basic
|
408
|
|
|
998
|
|
|
106
|
|
|
88
|
|
|
311
|
|
|
323
|
|
|
(34)
|
|
|
(687)
|
|
|
1,513
|
|
Incremental dilution
from VMware, Inc. attributable to Dell Technologies Inc.
(b)
|
(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(8)
|
|
Net income
attributable to Dell Technologies Inc. - diluted
|
$
|
405
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
1,505
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
0.56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2.06
|
|
Earnings per share -
diluted
|
$
|
0.54
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
2.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
734
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
734
|
|
Weighted-average
shares outstanding - diluted
|
754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
754
|
|
|
_________________
|
(a)
|
Net income
attributable to non-controlling interests is calculated by
multiplying the minority interest percentage of VMware, Inc.,
Pivotal Software, Inc., and SecureWorks Corp. by their 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 Fiscal
Year Ended January 31, 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
|
$
|
5,529
|
|
|
4,408
|
|
|
411
|
|
|
285
|
|
|
1,262
|
|
|
1,160
|
|
|
(194)
|
|
|
(6,772)
|
|
|
$
|
6,089
|
|
Less: Net income
attributable to non-controlling interests (a)
|
913
|
|
|
295
|
|
|
23
|
|
|
50
|
|
|
217
|
|
|
45
|
|
|
24
|
|
|
(1,032)
|
|
|
535
|
|
Net income
attributable to Dell Technologies Inc. - basic
|
4,616
|
|
|
4,113
|
|
|
388
|
|
|
235
|
|
|
1,045
|
|
|
1,115
|
|
|
(218)
|
|
|
(5,740)
|
|
|
5,554
|
|
Incremental dilution
from VMware, Inc. attributable to Dell Technologies Inc.
(b)
|
(84)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(35)
|
|
Net income
attributable to Dell Technologies Inc. - diluted
|
$
|
4,532
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share -
basic
|
$
|
6.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7.67
|
|
Earnings per share -
diluted
|
$
|
6.03
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares outstanding - basic
|
724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
724
|
|
Weighted-average
shares outstanding - diluted
|
751
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
751
|
|
|
_________________
|
(a)
|
Net income
attributable to non-controlling interests is calculated by
multiplying the minority interest percentage of VMware, Inc.,
Pivotal Software, Inc., and SecureWorks Corp. by their 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.
|
View original
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SOURCE Dell Technologies