Dell Technologies Q4 Revenue $20B
March 31, 2017
Technologies reported its fiscal 2017 fourth quarter and full year
results, which reflect the growth and impact of the EMC transaction.
For the fourth quarter, consolidated revenue from continuing operations
was $20.1 billion and non-GAAP revenue from continuing operations was
$20.6 billion. During the quarter, the company generated an operating
loss of $1.7 billion, with a non-GAAP operating income of $1.8 billion.
For the full year, consolidated revenue from continuing operations was
$61.6 billion and non-GAAP revenue from continuing operations was $62.8
billion. The company generated an operating loss of $3.3 billion, with a
non-GAAP operating income of $5.1 billion.
Due to the EMC transaction as well as the Dell going-private
transaction, significant non-cash bridging items will remain between
GAAP and non-GAAP results for the next few years. Prior-year historical
Dell Technologies financials do not include EMC historical results,
thereby impacting any year-over-year comparisons.
"I'm pleased with our overall fiscal 2017 performance, with growth in
our client business and positive momentum from investments we're making
in our infrastructure business," said Tom Sweet, chief financial
officer, Dell Technologies Inc. "In our fiscal year 2018, we'll drive
that momentum forward, beginning with our new sales go-to-market
capabilities, and continue to target identified revenue and cost
synergies while investing in our broad portfolio of solutions."
The company ended the year with a cash and investments balance of $15.3
billion, an increase of $287 million from the third quarter.
Since closing the EMC transaction, Dell Technologies has paid down
approximately $7 billion in debt and repurchased $824 million of Class V
Common Stock under the previously announced Class V Common Stock
Today the company also announced the board has approved an amendment to
its existing Class V Group Repurchase Program for up to an additional
$300 million over six months. The amount will be funded solely through a
new VMware Class A Stock Purchase Agreement with VMware.
Dell Technologies' fiscal year 2017
included an additional week, which is incorporated into the company's
fourth quarter results.
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
Operating segments summary
Client Solutions Group continued to outgrow the market worldwide for
units in both commercial and consumer product categories on a calendar
year basis. Revenue for the fiscal fourth quarter was $9.8 billion, up
11 percent versus the fourth quarter of last year, and revenue for the
full year was $36.8 billion, up 2 percent year over fiscal year 2016.
Operating income was $342 million for the quarter, and $1.8 billion for
the full year.
Key calendar fourth quarter highlights include:
•PC shipments of 11 million,
representing the largest volume of products shipped since the fourth
quarter of 2011
•8.2 percent year-over-year PC
shipment increase, the best among the top seven PC vendors, with 16
consecutive quarters of year-over-year PC unit share growth and 150
basis points of unit share gained for the calendar year
•No. 1 share position worldwide for
displays, gaining unit share year-over-year for the 16th consecutive
Infrastructure Solutions Group generated $8.4 billion of revenue in the
fourth quarter, which includes $3.6 billion in servers and networking
and $4.8 billion in storage, and an operating income of $1 billion.
calendar fourth quarter highlights:
•Regained the No. 1 worldwide server
unit share position driven by strength in the mainstream PowerEdge
•No. 1 market share position in
all-flash arrays, which exited 2016 at a more than $4 billion demand run
•The industry's fastest growing
hyperconverged infrastructure vendor during the calendar fourth quarter
with more than 300 percent demand growth
VMware revenue for the fourth quarter
was $1.9 billion, with operating income of $565 million, or 29.2 percent