DELL TECHNOLOGIES REPORTS FISCAL YEAR 2018 FOURTH QUARTER AND FULL YEAR FINANCIAL RESULTS
News summary Strong velocity with record revenue of $21.9 billion for the fourth quarter, up 9 percent $6.8 billion cash flow from operations for the full year and paid $10 billion of debt since@ EMC transaction close Exited the fiscal year with growth across all segments; strong customer acceptance across the Dell Technologies portfolio Leader in 21 of the top market share categories Full story @Dell Technologies (NYSE: DVMT) announces its fiscal 2018 fourth quarter and full year results. For the fourth quarter, consolidated revenue was $21.9 billion, up 9 percent, and non-GAAP revenue was $22.2 billion, up 8 percent from the prior period. During the quarter, the company generated a GAAP operating loss of $321 million1, with a non-GAAP operating income of $2.1 billion, up 15 percent. For the full year, consolidated revenue was $78.7 billion and non-GAAP revenue was $79.9 billion. The company generated an annual GAAP operating loss of $3.3 billion, with a non-GAAP operating income of $6.9 billion. “I was pleased with our results in fiscal 2018. We finished the year with good revenue and profitability momentum, with non-GAAP operating income up 15 percent year-over-year,” said Tom Sweet, chief financial officer, Dell Technologies. “We drove velocity at or above market rate in multiple areas of the business and generated strong operating cash flow as we brought the full capabilities of Dell Technologies together. In fiscal 2019 we’ll continue to execute our long-term strategy, capitalizing on our broad portfolio of solutions for customers at every stage of the digital transformation journey.” The company ended the year with a cash and investments balance of $20.3 billion, an increase of $2.3 billion from the third quarter and an increase of $5.0 billion from last year. Since closing the EMC transaction, Dell Technologies has paid down approximately $10 billion in gross debt, excluding Dell Financial Services debt.
Dell Technologies’ fiscal year 2017 included an additional week, which is incorporated into the company’s fourth quarter results for FY2017. Fourth quarter fiscal 2018 non-GAAP operating income excludes approximately $2.4 billion of adjustments, and full year fiscal 2018 non-GAAP operating income excludes approximately $10.2 billion of adjustments, primarily related to purchase accounting and amortization of intangible assets. 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. “We exited the year with growth across all of our segments, with particular strength in commercial client and in servers and networking. In addition, we saw demand growth up double digits for all-flash and triple digits for hyper-converged infrastructure in the fourth quarter, and we see a significant opportunity to ignite momentum in traditional storage in fiscal 2019,” said Jeff Clarke, vice-chairman, Products & Operations, Dell Technologies. “With our industry leadership, innovation and laser-like focus on making our solutions easy to buy and own, we’ll continue in fiscal year 2019 to deliver on the commitments we make to customers.” Operating segments summary Client Solutions Group revenue for the fiscal fourth quarter was $10.6 billion, up 8 percent versus the fourth quarter of last year. Commercial revenue grew 9 percent to $7.3 billion and Consumer revenue was up 6 percent to $3.3 billion. Revenue for the full year was $39.5 billion. Operating income for the fourth quarter was $581 million, a 70 percent increase, and was $2.2 billion for the full year. Key fourth quarter highlights include: Year-over-year worldwide PC share growth for 20th consecutive quarter2 No. 1 share position worldwide for displays, gaining unit share year over year for the 18th consecutive quarter3 Record holiday season sales for consumer and gaming products Record-high 87 product awards at the Consumer Electronics Show Infrastructure Solutions Group revenue for the fourth quarter was $8.8 billion, a 5 percent increase. This was driven by $4.6 billion in servers and networking, a 27 percent increase, and $4.2 billion in storage. Revenue for the full year was $30.7 billion, with servers and networking revenue at $15.4 billion and storage revenue at $15.3 billion. Operating income was $748 million for the fourth quarter and $2.2 billion for the full year. Key fourth quarter highlights: Third consecutive quarter of record server revenue, fueled by double-digit growth for both PowerEdge and Cloud servers Worldwide leader for x86 servers in calendar fourth quarter, both in units and revenue4 No. 1 market share position in all-flash arrays5 Demand for all-flash offerings exited fiscal 2018 at a nearly $5 billion run rate VMware revenue for the fourth quarter was $2.3 billion, up 20 percent, with operating income of $834 million, up 48 percent, and 35.8 percent of revenue. Fourth quarter revenue from other businesses, including Pivotal, RSA, Secureworks and Virtustream, was $492 million, up 3 percent. Conference call information As previously announced, the company will hold a conference call to discuss its fourth quarter and full-year performance today at 7 a.m. CDT. The conference call will be broadcast live over the internet and can be accessed at investors.delltechnologies.com. For those unable to listen to the live broadcast, an archived version will be available at the same location for one year. A slide presentation containing additional financial and operating information may be downloaded from Dell Technologies’ website at investors.delltechnologies.com. Dell Technologies World Join us April 30 – May 3 in Las Vegas at Dell Technologies World, the company’s flagship event that brings together latest emerging trends, technology and gurus, from the edge to the core to the cloud. During the event, experts from all seven Dell Technologies businesses will demonstrate to customers and partners the connected ecosystem of IT infrastructure, applications, devices and security that can enable real transformation across their organizations. Learn more at http://www.delltechnologiesworld.com.