Dell Technologies Reports Fiscal Year 2017 Fourth Quarter and Full Year Financial Results
Dell Technologies (NYSE: DVMT) announces 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 repurchase programs.
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.
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 18.2 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 1No. 1 share position worldwide for displays, gaining unit share year-over-year for the 16th consecutive quarter 2
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.
Key calendar fourth quarter highlights:
Regained the No. 1 worldwide server unit share position driven by strength in the mainstream PowerEdge business 3No. 1 market share position in all-flash arrays4, which exited 2016 at a more than $4 billion demand run rateThe 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 of revenue.
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