Solid operating income improvement and focused cost management, while investing for future growth Strong cash flow from operations benefitted from sequential revenue growth, profitability, and improvement in working capital #Dell and #EMC transaction closes on September 7, 2016
ROUND ROCK, Texas--(BUSINESS WIRE)--Dell Technologies today announced its fiscal 2017 second quarter results, with revenue of $13.1 billion from continuing operations1, an increase of 1 percent year-over-year. The company reported operating income of $63 million, reversing an operating loss in the year-ago quarter, and achieved non-GAAP operating income of $752 million, an improvement of 32 percent year-over-year.
#DellTechnologies Reports Fiscal Year 2017 Second Quarter Financial Results
“We executed well in the quarter driving $880 million in adjusted EBITDA, up 31 percent,” said Tom Sweet, chief financial officer, Dell Inc. “Our second quarter results underscore our ability to consistently balance growth and profitability, and strategically invest in areas that will drive long-term profitable growth and strong cash flow. In the quarter, cash flow from operations was $1.9 billion and for the trailing twelve months was $3.2 billion, an improvement of 50 percent.”
Key Business Highlights:
14th consecutive quarter of year-over-year share gains in PCs;Grew worldwide commercial PC’s 6.2 percent and gained 90 basis points of unit share;Consumer PC share outperformed the industry worldwide gaining 110 basis points of unit share;Servers and Networking revenue grew 1 percent year-over-year; Dell Storage SC product line revenue grew 13 percent; and,No. 1 worldwide flat-panel monitor provider for 13thconsecutive quarter.
Fiscal Year 2017 Second Quarter Results:
Revenue was $13.1 billion, up 1 percent from the previous year;Operating income for the quarter was $63 million, reversing an operating loss from the previous year;Non-GAAP revenue in the quarter was $13.1 billion, flat from the previous year;Non-GAAP operating income was $752 million, a 32 percent increase from the previous year;Cash flow from operations in the quarter was $1.9 billion. On a trailing twelve-month basis, cash flow from operations was approximately $3.2 billion, up 50 percent; and,Cash and investments totaled $7.5 billion, up $1.2 billion over the prior quarter.
Operating Segments Summary:
Client Solutions business revenue for the quarter was $9.2 billion, flat versus the second quarter of last year. Operating income for the quarter was $484 million, a 50 percent increase. Operating income favorability was primarily driven by improved cost and balanced pricing decisions. We are also seeing growth in our attached software, peripherals and services business driven by growth in displays. In displays, we remained #1 in share, gaining unit share year-over-year for the 13th consecutive quarter.Enterprise Solutions Group revenue was $3.8 billion, unchanged year-over-year. Operating income for the quarter was $300 million, a 7 percent increase, as the company continued to make investments to help our customers to transition from traditional data centers to hybrid environments.
Conference Call Information
As previously announced, Dell Technologies will close the Dell and EMC transaction on Wednesday, Sept. 7, 2016. The company will hold a conference call to discuss its second quarter performance on September 8, 2016, at 7 a.m. CDT. The conference call will be broadcast live over the Internet and can be accessed atwww.dell.com/investors. For those unable to listen to the live broadcast, an archived version will be available at the same location until Oct. 8, 2016.
A slide presentation containing additional financial and operating information may be downloaded from Dell Technologies’ website at www.dell.com/investors.
About Dell Technologies
Dell Technologies is a unique family of businesses that provides the essential infrastructure for organizations to build their digital future, transform IT and protect their most important asset, information. For more information, visit www.dell.com. To communicate directly with Dell Technologies, go to www.dell.com/dellshares.
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