Dell Reports Fiscal 2017 Third Quarter Results 

ROUND ROCK, Tex., Dec. 8 -- Dell Technologies (NYSE: DVMT) announced its fiscal 2017 third quarter results, which reflect the impact of the EMC merger and include 52 days of financial results from EMC and VMware. Consolidated revenue from continuing operations was $16.2 billion and non-GAAP revenue from continuing operations was $16.8 billion. The company generated an operating loss of $1.5 billion in the quarter, with a non-GAAP operating income of $2 billion.

“Overall we had a solid quarter with revenue of $16.2 billion, or $16.8 billion on a non-GAAP basis,” said Tom Sweet, chief financial officer, Dell Technologies Inc. “We remain intensely focused on enabling customers’ digital transformation initiatives. This customer-first focus is also driving our near-term priorities, which include successfully integrating our salesforce and channel partner programs and seizing top-line synergies through cross-selling opportunities.”

The company ended the quarter with a cash and investments balance of $15 billion. During the quarter, Dell Technologies paid down $500 million of debt and repurchased $165 million of Class V Common Stock under the repurchase program it announced Sept. 7. Since the completion of the EMC transaction, Dell Technologies has reduced total debt by $5.8 billion and repurchased $324 million of Class V Common Stock under its repurchase program.

Operating segments summary:

Client Solutions Group outgrew the industry in both Consumer and Commercial with business revenue for the quarter at $9.2 billion, up 3 percent versus the third quarter of last year. Operating income for the quarter was $634 million. Key takeaways from the quarter include:

• Fastest growth among top three vendors, with 15th consecutive quarter of year-over-year PC unit growth and 160 basis points of unit share gained
• No. 1 in workstations unit share worldwide (tied)
• No. 1 share position worldwide for displays, gaining unit share year-over-year for the 14th consecutive quarter

Infrastructure Solutions Group performance was mixed in the quarter, with revenue of approximately $6 billion and operating income of $897 million. Key takeaways include:

• Strong growth of the all-flash portfolio and Enterprise Hybrid Cloud solutions
• Strong performance of the hyper-converged infrastructure portfolio, including triple-digit year-over-year revenue growth for XC hyper-converged infrastructure products
• Softness in standalone hybrid storage arrays and servers

VMware revenue during the 52-day operations period from the close of the EMC merger (Sept. 7) to the end of Dell Technologies’ fiscal third quarter 2017 (Oct. 28) was $1.3 billion, with an operating income of $548 million.

Also during the quarter, Dell Technologies held its first Dell EMC World combined customer and partner conference, which saw record attendance and the launch of 14 new products, including Dell EMC’s VxRail and VxRack hyper-converged infrastructure solutions using PowerEdge servers. The company also shipped its first integrated solution – the ScaleIO Ready Node – less than 30 days following the close of the EMC transaction.

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. The company services customers of all sizes across 180 countries – ranging from 98 percent of the Fortune 500 to individual consumers – with the industry’s most comprehensive and innovative portfolio from the edge to the core to the cloud.

Source: Dell Technologies