Gaming

News summary

  • Record second quarter revenue of $26.4 billion , up 9%, driven by continued growth across client and infrastructure business units
  • Operating income up 25% at $1.3 billion , and non-GAAP operating income up 4% at $2 billion
  • Diluted earnings per share of $0.68 and non-GAAP diluted earnings per share of $1.68

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Dell Technologies logo (PRNewsfoto/Dell Technologies)

Full story

Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2023 second quarter. Revenue was a second quarter record of $26.4 billion , up 9%, driven by growth across Client Solutions Group (CSG) and Infrastructure Solutions Group (ISG). Operating income was $1.3 billion , up 25%, representing 4.8% of revenue, and non-GAAP operating income was $2 billion , up 4%, representing 7.4% of revenue. Net income from continuing operations was $506 million and non-GAAP net income was $1.3 billion . Diluted earnings per share was $0.68 , and non-GAAP diluted earnings per share was $1.68 .

Second Quarter Fiscal 2023 Financial Results


Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change


(in millions, except per share amounts and percentages; unaudited)

Total net revenue

$          26,425


$           24,191


9 %


$          52,541


$          46,781


12 %

Operating income

$            1,270


$             1,017


25 %


$            2,820


$            2,004


41 %

Net income from continuing operations

$                506


$                629


(20) %


$            1,575


$            1,288


22 %

Earnings per share - diluted

$               0.68


$               0.80


(15) %


$              2.06


$              1.65


25 %













Non-GAAP net revenue

$          26,425


$          24,199


9 %


$          52,541


$          46,797


12 %

Non-GAAP operating income

$            1,952


$            1,868


4 %


$            4,087


$            3,638


12 %

Non-GAAP net income

$            1,266


$            1,166


9 %


$            2,700


$            2,221


22 %

Non-GAAP earnings per share - diluted

$               1.68


$              1.48


14 %


$              3.52


$              2.83


24 %

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.

Operating segments summary

Client Solutions Group delivered second quarter record revenue of $15.5 billion , up 9% year-over-year. Commercial revenue was $12.1 billion , a 15% increase year-over-year, and Consumer revenue was $3.3 billion , down 9% year-over-year. Focus on the commercial market continues to drive differentiated share results, with share gains in 34 of the last 38 quarters. 1 Operating income was $1 billion , or approximately 6.3% of Client Solutions Group revenue.

Key areas of innovation:

  • Precision 7865 Tower delivers on 25 years of commercial workstation innovation, supporting demanding, multi-application workloads.
  • Alienware m15 R5 launches as the most powerful 17-inch AMD Advantage™ gaming laptop.
  • New commercial devices for hybrid work are available, including the Latitude 9330 , the world's first laptop with a collaboration touchpad that lets users mute, turn video on/off, screen share and chat.
  • This year's rollout of premium laptops continues with the launch of the XPS 13 and reveal of the versatile XPS 2-in-1.

Infrastructure Solutions Group delivered record second quarter revenue of $9.5 billion , up 12% and its sixth consecutive quarter of year-over-year growth. Storage revenue was $4.3 billion , up 6%, with growth across the portfolio and demand strength in high-end storage and our marquee mid-range product PowerStore, which has now grown every quarter since its launch. Servers and networking revenue was $5.2 billion , up 16% year-over-year. Operating income was $1 billion or approximately 11% of Infrastructure Solutions Group revenue.

Key areas of innovation:

The largest release in PowerStore history and new PowerMaxOS10 software are now available, delivering more than 500 new Dell storage software advancements that help customers drive faster insights, achieve better multicloud data control and increase cyber resiliency.

Dell Technologies ended the quarter with remaining performance obligations of $41 billion , up 2% year-over-year, deferred revenue of $28 billion , and cash and investments of $7 .1 billion . Recurring revenue for the second quarter was approximately $5 .2 billion , up 8% year-over-year. APEX annual recurring revenue is now over $1 billion , with second quarter orders growth of 78% year-over-year.

Executive Quotes:

  • "We continued to execute well in an increasingly challenging environment with record second quarter revenue of $26.4 billion , up 9% ," said Jeff Clarke , vice chairman and co-chief operating officer, Dell Technologies. "We also advanced our long-term strategy – growing the core while innovating for our customers and enabling their opportunities in the data era."
  • "We delivered strong CSG and ISG growth and profitability – with revenue up 12% and 9% respectively – although we observed more cautious customer behavior as the quarter progressed," said Chuck Whitten , co-chief operating officer, Dell Technologies. "Customers continue to prioritize advanced technology solutions to compete and succeed in the years ahead, and we are confident in our long-term opportunities."
  • "Another quarter of record revenue, together with our operating income of $1.3 billion and non-GAAP operating income of $2 billion , affirms our industry strength and competitive position," said Tom Sweet , chief financial officer, Dell Technologies. "We remain focused on what we can control, staying flexible and opportunistic, and delivering revenue and EPS growth with strong free cash flow to our shareholders over time."

Conference call information

As previously announced, the Company will hold a conference call to discuss its performance and financial guidance on Aug. 25, 2022 , at 4:30 p.m. CDT . Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet can be accessed at
https://investors.delltechnologies.com/events-and-presentations/upcoming-events

For those unable to listen to the live broadcast, the final remarks and presentation with guidance will be available following the broadcast, and an archived version will be available at the same location for one year.

Customer Highlights Blog

Read our quarterly blog from Bill Scannell , Dell Technologies president of Global Sales & Customer Operations, to learn more about how we are helping customers with their digital transformations:
https://www.dell.com/en-us/blog/technology-investments-are-key-to-customers-competitive-advantage/

Environmental, Social and Governance (ESG)

Our Environmental, Social and Governance (ESG) efforts focus on driving positive impact for people and our planet while delivering long-term value for our stakeholders. The FY22 ESG report was published June 30, 2022 , and the Company held a conference call to discuss on July 21 . ESG resources can be accessed at
https://www.dell.com/en-us/dt/corporate/social-impact/reporting/esg-governance.htm

About Dell Technologies

Dell Technologies (NYSE:DELL) helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry's broadest and most innovative technology and services portfolio for the data era.

Copyright © 2022 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

Non-GAAP Financial Measures:

This press release presents information about Dell Technologies' non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, and non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:

Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.

Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: risks and uncertainties relating to our spin-off of VMware, Inc., including the potential effects on our business of the transaction; the effects of the COVID-19 pandemic; competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies' foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies' product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; weak economic conditions and the effect of additional regulation on Dell Technologies' financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies' infrastructure; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; compliance requirements of changing environmental and safety laws or other laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; the effect of global climate change and legal, regulatory, or market measures to address climate change; Dell Technologies' dependence on the services of Michael Dell and key employees; Dell Technologies' level of indebtedness; the effect of the transition from LIBOR as a reference rate to calculate interest rates under our variable-rate indebtedness; and business and financial factors and legal restrictions affecting continuation of Dell Technologies' quarterly cash dividend policy and dividend rate.

This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies' annual report on Form 10-K for the fiscal year ended January 28, 2022 , quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC's website at www.sec.gov . Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.

1 Based on units, as of Q2 CY2022 IDC data. Data between Q1 CY2013 and Q2 CY2022.

DELL TECHNOLOGIES INC. FINANCIAL INFORMATION

Basis of Presentation

Spin-Off of VMware, Inc. — On November 1, 2021 , Dell Technologies Inc. completed its spin-off of VMware, Inc. ("VMware") by means of a special stock dividend (the "VMware Spin-off"). In accordance with applicable accounting guidance, the results of VMware, excluding Dell's resale of VMware offerings, are presented as discontinued operations in the Condensed Consolidated Statements of Income and, as such, have been excluded from both continuing operations and segment results for the three and six months ended July 30 , 2021.  The Condensed Consolidated Statements of Cash Flows are presented on a consolidated basis for both continuing operations and discontinued operations.

DELL TECHNOLOGIES INC.

Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)



Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change

Net revenue:












Products

$     20,810


$     18,895


10 %


$  41,274


$  36,382


13 %

Services

5,615


5,296


6 %


11,267


10,399


8 %

Total net revenue

26,425


24,191


9 %


52,541


46,781


12 %

Cost of net revenue:












Products

17,671


15,692


13 %


34,680


30,126


15 %

Services

3,315


3,024


10 %


6,638


5,916


12 %

Total cost of net revenue

20,986


18,716


12 %


41,318


36,042


15 %

Gross margin

5,439


5,475


(1) %


11,223


10,739


5 %

Operating expenses:












Selling, general, and administrative

3,543


3,761


(6) %


7,096


7,419


(4) %

Research and development

626


697


(10) %


1,307


1,316


(1) %

Total operating expenses

4,169


4,458


(6) %


8,403


8,735


(4) %

Operating income

1,270


1,017


25 %


2,820


2,004


41 %

Interest and other, net

(635)


(292)


(117) %


(972)


(580)


(68) %

Income before income taxes

635


725


(12) %


1,848


1,424


30 %

Income tax expense

129


96


34 %


273


136


101 %

Net income from continuing operations

506


629


(20) %


1,575


1,288


22 %

Income from discontinued operations, net of income taxes


251


(100) %



530


(100) %

Net income

506


880


(43) %


1,575


1,818


(13) %

Less: Net loss attributable to non-controlling interests

(5)


(2)


(150) %


(8)


(3)


(167) %

Less: Net income attributable to non-controlling interests of discontinued operations


51


(100) %



103


(100) %

Net income attributable to Dell Technologies Inc.

$           511


$           831


(39) %


$     1,583


$     1,718


(8) %













Percentage of Total Net Revenue:












Gross margin

20.6 %


22.6 %




21.4 %


23.0 %



Selling, general, and administrative

13.4 %


15.5 %




13.5 %


15.9 %



Research and development

2.4 %


2.9 %




2.5 %


2.8 %



Operating expenses

15.8 %


18.4 %




16.0 %


18.7 %



Operating income

4.8 %


4.2 %




5.4 %


4.3 %



Income before income taxes

2.4 %


3.0 %




3.5 %


3.0 %



Net income from continuing operations

1.9 %


2.6 %




3.0 %


2.8 %



Income tax rate

20.3 %


13.2 %




14.8 %


9.6 %




Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC.

Consolidated Statements of Financial Position

(in millions; unaudited)



July 29, 2022


January 28, 2022

ASSETS

Current assets:




Cash and cash equivalents

$                           5,507


$                           9,477

Accounts receivable, net

13,431


12,912

Due from related party, net

195


131

Short-term financing receivables, net

4,860


5,089

Inventories

5,883


5,898

Other current assets

12,386


11,526

Total current assets

42,262


45,033

Property, plant, and equipment, net

5,772


5,415

Long-term investments

1,520


1,839

Long-term financing receivables, net

5,450


5,522

Goodwill

19,505


19,770

Intangible assets, net

6,972


7,461

Due from related party, net

609


710

Other non-current assets

6,685


6,985

Total assets

$                         88,775


$                         92,735

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:




Short-term debt

$                           6,647


$                           5,823

Accounts payable

25,339


27,143

Due to related party

1,269


1,414

Accrued and other

6,810


7,578

Short-term deferred revenue

14,724


14,261

Total current liabilities

54,789


56,219

Long-term debt

20,287


21,131

Long-term deferred revenue

13,301


13,312

Other non-current liabilities

3,153


3,653

Total liabilities

91,530


94,315

Stockholders' equity (deficit):




Total Dell Technologies Inc. stockholders' equity (deficit)

(2,860)


(1,685)

Non-controlling interests

105


105

Total stockholders' equity (deficit)

(2,755)


(1,580)

Total liabilities and stockholders' equity

$                         88,775


$                         92,735

DELL TECHNOLOGIES INC.

Consolidated Statements of Cash Flows

(in millions; unaudited)



Three Months Ended


Six Months Ended


July 29, 2022


July 30, 2021


July 29, 2022


July 30, 2021

Cash flows from operating activities:








Net income

$                506


$                880


$            1,575


$            1,818

Adjustments to reconcile net income to net cash provided by operating activities:

218


845


(1,120)


2,145

Change in cash from operating activities

724


1,725


455


3,963

Cash flows from investing activities:








Purchases of investments

(28)


(124)


(80)


(270)

Maturities and sales of investments

50


79


68


335

Capital expenditures and capitalized software development costs

(807)


(632)


(1,497)


(1,257)

Acquisition of businesses and assets, net


(6)



(16)

Other

7


14


11


20

Change in cash from investing activities

(778)


(669)


(1,498)


(1,188)

Cash flows from financing activities:








Proceeds from the issuance of common stock

1


26


5


186

Repurchases of parent common stock (a)

(689)


(8)


(2,468)


(17)

Repurchases of subsidiary common stock (a)

(1)


(544)


(8)


(978)

Payments of dividends to stockholders

(242)



(490)


Proceeds from debt

3,431


1,209


6,465


3,935

Repayments of debt

(3,539)


(4,353)


(6,242)


(8,423)

Debt-related costs and other, net

(7)


(3)


(14)


(14)

Change in cash from financing activities

(1,046)


(3,673)


(2,752)


(5,311)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

(83)


(16)


(194)


(21)

Change in cash, cash equivalents, and restricted cash

(1,183)


(2,633)


(3,989)


(2,557)

Cash, cash equivalents, and restricted cash at beginning of the period, including cash attributable to discontinued operations

7,276


15,260


10,082


15,184

Cash, cash equivalents, and restricted cash at end of the period, including cash attributable to discontinued operations

6,093


12,627


6,093


12,627

Less: Cash, cash equivalents, and restricted cash attributable to discontinued operations


5,922



5,922

Cash, cash equivalents, and restricted cash from continuing operations

$            6,093


$            6,705


$            6,093


$            6,705

_________________

(a)

Common stock repurchases are inclusive of employee tax withholding on stock-based compensation.

DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited; continued on next page)



Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change

Infrastructure Solutions Group (ISG):

Net revenue:












Servers and networking

$           5,209


$           4,480


16 %


$         10,257


$           8,620


19 %

Storage

4,327


4,070


6 %


8,564


7,963


8 %

Total ISG net revenue

$           9,536


$           8,550


12 %


$         18,821


$         16,583


13 %













Operating Income:












ISG operating income

$           1,046


$               962


9 %


$           2,128


$           1,740


22 %

% of ISG net revenue

11.0 %


11.3 %




11.3 %


10.5 %



% of total reportable segment operating income

52 %


49 %




50 %


46 %















Client Solutions Group (CSG):

Net revenue:












Commercial

$         12,141


$         10,577


15 %


$         24,112


$         20,385


18 %

Consumer

3,349


3,691


(9) %


6,965


7,194


(3) %

Total CSG net revenue

$         15,490


$         14,268


9 %


$         31,077


$         27,579


13 %













Operating Income:












CSG operating income

$               978


$               986


(1) %


$           2,093


$           2,066


1 %

% of CSG net revenue

6.3 %


6.9 %




6.7 %


7.5 %



% of total reportable segment operating income

48 %


51 %




50 %


54 %




Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC.

Segment Information

(in millions, except percentages; unaudited; continued)



Three Months Ended


Six Months Ended


July 29, 2022


July 30, 2021


July 29, 2022


July 30, 2021

Reconciliation to consolidated net revenue:







Reportable segment net revenue

$             25,026


$             22,818


$             49,898


$             44,162

Other businesses (a)

1,399


1,378


2,638


2,630

Unallocated transactions (b)


3


5


5

Impact of purchase accounting (c)


(8)



(16)

Total consolidated net revenue

$             26,425


$             24,191


$             52,541


$             46,781









Reconciliation to consolidated operating income:








Reportable segment operating income

$                2,024


$                1,948


$                4,221


$                3,806

Other businesses (a)

(71)


(77)


(135)


(167)

Unallocated transactions (b)

(1)


(3)


1


(1)

Impact of purchase accounting (c)

(3)


(15)


(12)


(35)

Amortization of intangibles

(244)


(442)


(487)


(887)

Transaction-related expenses (d)

(3)


(37)


(8)


(66)

Stock-based compensation expense (e)

(236)


(206)


(468)


(378)

Other corporate expenses (f)

(196)


(151)


(292)


(268)

Total consolidated operating income

$                1,270


$                1,017


$                2,820


$                2,004

_________________

(a)

Other businesses consists of: 1) Dell's resale of standalone VMware, Inc. products and services, "VMware Resale," 2) Secureworks, and 3) Virtustream, and do not meet the requirements for a reportable segment, either individually or collectively.

(b)

Unallocated transactions includes other corporate items that are not allocated to Dell Technologies' reportable segments.

(c)

Impact of purchase accounting includes non-cash purchase accounting adjustments that are primarily related to the EMC merger transaction.

(d)

Transaction-related expenses includes acquisition, integration, and divestiture related costs.

(e)

Stock-based compensation expense consists of equity awards granted based on the estimated fair value of those awards at grant date.

(f)

Other corporate expenses includes impairment charges, incentive charges related to equity investments, severance, payroll taxes associated with stock-based compensation, facilities action, and other costs.  During the three and six months ended Fiscal 2023, other corporate expenses includes impairment and other costs incurred in connection with exiting our business in Russia.

SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES

These tables present information about the Company's non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to Dell Technologies Inc. - basic and diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, and non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A detailed discussion of Dell Technologies' reasons for including these non-GAAP financial measures, the limitations associated with these measures, the items excluded from these measures, and our reason for excluding those items are presented in "Management's Discussion and Analysis of Financial Condition and Results of Operations — Non-GAAP Financial Measures" in our periodic reports filed with the SEC. Dell Technologies encourages investors to review the non-GAAP discussion in these reports in conjunction with the presentation of non-GAAP financial measures.

DELL TECHNOLOGIES INC.

Selected Non-GAAP Financial Measures

(in millions, except per share amounts and percentages; unaudited)



Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change

Non-GAAP net revenue

$            26,425


$            24,199


9 %


$            52,541


$            46,797


12 %

Non-GAAP gross margin

$              5,650


$              5,673


— %


$            11,591


$            11,137


4 %

% of non-GAAP net revenue

21.4 %


23.4 %




22.1 %


23.8 %



Non-GAAP operating expenses

$              3,698


$              3,805


(3) %


$              7,504


$              7,499


— %

% of non-GAAP net revenue

14.0 %


15.7 %




14.3 %


16.0 %



Non-GAAP operating income

$              1,952


$              1,868


4 %


$              4,087


$              3,638


12 %

% of non-GAAP net revenue

7.4 %


7.7 %




7.8 %


7.8 %



Non-GAAP net income

$              1,266


$              1,166


9 %


$              2,700


$              2,221


22 %

% of non-GAAP net revenue

4.8 %


4.8 %




5.1 %


4.7 %



Non-GAAP earnings per share - diluted

$                1.68


$                1.48


14 %


$                3.52


$                2.83


24 %


Amounts are based on underlying data and may not visually foot due to rounding.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued on next page)



Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change

Net revenue

$             26,425


$             24,191


9 %


$             52,541


$             46,781


12 %

Non-GAAP adjustments:












Impact of purchase accounting


8





16



Non-GAAP net revenue

$             26,425


$             24,199


9 %


$             52,541


$             46,797


12 %













Gross margin

$                5,439


$                5,475


(1) %


$             11,223


$             10,739


5 %

Non-GAAP adjustments:












Amortization of intangibles

105


150




209


300



Impact of purchase accounting


9




2


18



Stock-based compensation expense

37


32




75


60



Other corporate expenses

69


7




82


20



Non-GAAP gross margin

$                5,650


$                5,673


— %


$             11,591


$             11,137


4 %













Operating expenses

$                4,169


$                4,458


(6) %


$                8,403


$                8,735


(4) %

Non-GAAP adjustments:












Amortization of intangibles

(139)


(292)




(278)


(587)



Impact of purchase accounting

(3)


(6)




(10)


(17)



Transaction-related expenses

(3)


(37)




(8)


(66)



Stock-based compensation expense

(199)


(174)




(393)


(318)



Other corporate expenses

(127)


(144)




(210)


(248)



Non-GAAP operating expenses

$                3,698


$                3,805


(3) %


$                7,504


$                7,499


— %













Operating income

$                1,270


$                1,017


25 %


$                2,820


$                2,004


41 %

Non-GAAP adjustments:












Amortization of intangibles

244


442




487


887



Impact of purchase accounting

3


15




12


35



Transaction-related expenses

3


37




8


66



Stock-based compensation expense

236


206




468


378



Other corporate expenses

196


151




292


268



Non-GAAP operating income

$                1,952


$                1,868


4 %


$                4,087


$                3,638


12 %

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)



Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change

Net income from continuing operations

$             506


$             629


(20) %


$          1,575


$          1,288


22 %

Non-GAAP adjustments:












Amortization of intangibles

244


442




487


887



Impact of purchase accounting

3


15




12


35



Transaction-related (income) expenses

(4)


25




(6)


54



Stock-based compensation expense

236


206




468


378



Other corporate expenses

212


151




308


268



Fair value adjustments on equity investments

255


(168)




241


(362)



Aggregate adjustment for income taxes

(186)


(134)




(385)


(327)



Non-GAAP net income

$          1,266


$          1,166


9 %


$          2,700


$          2,221


22 %













Net income from continuing operations attributable to Dell Technologies Inc.

$             511


$             631


(19) %


$          1,583


$          1,291


23 %

Non-GAAP adjustments:












Amortization of intangibles

244


442




487


887



Impact of purchase accounting

3


15




12


35



Transaction-related (income) expenses

(4)


25




(6)


54



Stock-based compensation expense

236


206




468


378



Other corporate expenses

212


151




308


268



Fair value adjustments on equity investments

255


(168)




241


(362)



Aggregate adjustment for income taxes

(186)


(134)




(385)


(327)



Total non-GAAP adjustments attributable to non-controlling interests

(3)


(2)




(5)


(3)



Non-GAAP net income attributable to Dell Technologies Inc.

$          1,268


$          1,166


9 %


$          2,703


$          2,221


22 %

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages and per share amounts; unaudited; continued)



Three Months Ended




Six Months Ended




July 29, 2022


July 30, 2021


Change


July 29, 2022


July 30, 2021


Change













Earnings per share from continuing operations attributable to Dell Technologies Inc.





Net income from continuing operations attributable to Dell Technologies Inc. basic

$             511


$             631




$          1,583


$          1,291



Weighted-average shares outstanding basic

739


763




746


760



Earnings per share attributable to Dell Technologies Inc. basic

$            0.69


$            0.83


(17) %


$            2.12


$            1.70


25 %













Net income from continuing operations attributable to Dell Technologies Inc. diluted

$             511


$             631




$          1,583


$          1,291



Weighted-average shares outstanding diluted

755


786




768


784



Earnings per share attributable to Dell Technologies Inc. — diluted:

$            0.68


$            0.80


(15) %


$            2.06


$            1.65


25 %













Earnings per share from discontinued operations attributable to Dell Technologies Inc.





Net income from discontinued operations attributable to Dell Technologies Inc. basic

$                —


$             200




$                —


$             427



Weighted-average shares outstanding basic


763





760



Earnings per share attributable to Dell Technologies Inc. basic

$                —


$            0.26


NM


$                —


$            0.56


NM

Incremental dilution from VMware, Inc. attributable to Dell Technologies


(3)





(5)



Net income from discontinued operations attributable to Dell Technologies Inc. diluted

$                —


$             197




$                —


$             422



Weighted-average shares outstanding diluted


786





784



Earnings per share attributable to Dell Technologies Inc. — diluted

$                —


$            0.25


NM


$                —


$            0.53


NM













Non-GAAP earnings per share attributable to Dell Technologies Inc.



Non-GAAP net income attributable to Dell Technologies Inc. basic

$          1,268


$          1,166




$          2,703


$          2,221



Weighted-average shares outstanding basic

739


763




746


760



Earnings per share attributable to Dell Technologies Inc. basic

$            1.72


$            1.53


12 %


$            3.62


$            2.92


24 %













Non-GAAP net income attributable to Dell Technologies Inc. diluted

$          1,268


$          1,166




$          2,703


$          2,221



Weighted-average shares outstanding diluted

755


786




768


784



Earnings per share attributable to Dell Technologies Inc. — diluted

$            1.68


$            1.48


14 %


$            3.52


$            2.83


24 %


Amounts may not visually recalculate due to rounding.

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/dell-technologies-announces-second-quarter-fiscal-2023-financial-results-301612799.html

SOURCE Dell Technologies

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GAMING00
East Side Games

The Office: Somehow We Manage Mobile Game Available Now

East Side Games Group (TSX: EAGR) (OTC: EAGRF) (" ESGG " or the " Company "), Canada's leading free-to-play mobile game group, in collaboration with Universal Games and Digital Platforms, announced today the worldwide launch of The Office: Somehow We Manage on iOS and Android. The free-to-play idle game is inspired by NBC's critically acclaimed, Emmy® Award-winning U.S. version of The Office which is now streaming exclusively on Peacock.

Watch the launch trailer here .

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Immersive, Accessible Experiences Drive Growth in U.S. Gaming Market

New report from CTA explores gaming's post-pandemic popularity

The U.S. gaming population expanded by 3% from 2019 to 2022, as 9 million new gamers aged 13 to 64 entered the market, according to a new Consumer Technology Association (CTA)® study . The active gaming population in this age range now totals 164 million, representing 73% of 224 million U.S. adults and adolescents.

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LootMogul, Sports Metaverse announces first naming rights deal to Hoop Culture

LootMogul announced that an agreement has been made for Hoop Culture Inc. to acquire the naming rights for the Metaverse Arena in Orlando .

LootMogul, Sports Metaverse announces first naming rights deal to Hoop Culture

The terms of the deal also include an agreement for Hoop Culture to place five retail/experiential stores in five Arenas within the LootMogul Metaverse.

"We have been receiving a high number of inquiries for naming rights in our Sports Metaverse, and penning this agreement with Hoop Culture, one of the fastest growing apparel brands, is phenomenal.

Our goal is to onboard all major brands in our sports metaverse, convert their web 2 consumers to web 3 and vice-versa; essentially create a whole new revenue stream in the metaverse for all brands," stated Raj Rajkotia, LootMogul CEO.

"To obtain the naming rights for the Orlando Arena is a tremendous day in the continued growth of Hoop Culture," said Mike Brown , President of Hoop Culture.

"Having Hoop Culture stores in five LootMogul Metaverse Arenas will continue to expand our brand and place us in front of hundreds of millions of potential customers. Game players will be able to represent the Hoop Culture brand within the Metaverse and purchase physical products that will be sent directly to the customer. Truly a game changer," added Brown.

About LootMogul

LootMogul is an athlete-led sports metaverse (web3 platform) that is powered by virtual real estate, training academies, blockchain games, metashops for brands and athletes with in-real-life (IRL) rewards. LootMogul is expanding the web3 community by bringing web2 gamers and sports fanatics to the metaverse. LootMogul is building more than 180 sports cities across the globe with real-world utilities and benefits.

LootMogul recently secured a $200 million investment commitment from Gem Global Yield LLC SCS (GGY), part of GEM, that will expedite the adoption of blockchain gaming for sports organizations and athletes and truly deliver an immersive sports fans experience.

More investment news: https://www.thecoinrepublic.com/2022/09/17/lootmogul-sport-metaverse-company-secured-200-million-in-funding/

For more details visit: https://lootmogul.com

LootMogul Community - https://www.instagram.com/lootmogul/

About Hoop Culture

Hoop Culture is the premier, one-stop store for copping unique basketball accessories; the forerunner of the independent street and lifestyle apparel, setting trends with each and every new arrival. Hoop Culture currently sells products in 38 countries around the world, and maintains a vast social media network of over 150 million impressions a month.

For more information: https://hoopculture.com

Photo: https://mma.prnewswire.com/media/1907500/LootMogul_Hoop_Culture.jpg
Logo: https://mma.prnewswire.com/media/1900970/LootMogul_New_Logo.jpg

LootMogul Logo (PRNewsfoto/Lootmogul)

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/lootmogul-sports-metaverse-announces-first-naming-rights-deal-to-hoop-culture-301633118.html

SOURCE LootMogul

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Concordium partners with Versus metaverse to expand beyond Ethereum Mainnet to combat steep gas prices

NFT battle game Versus which features an Animal-Crossing-inspired open-world multiplayer metaverse, is adding Concordium to its ecosystem allowing players to explore unique arenas in collaboration with major brands.

At present, NFT minting and changing ownership transactions for the Versus metaverse are executed on Ethereum Mainnet, while a Layer-2 takes care of "mini-transactions" such as playing a game or training a pet. Compared to Ethereum's current steep gas prices, Concordium offers cheap, fixed and predictable fees for players and is a safer bet for Versus.

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Accelerating the buildout of real-time cloud rendering ecosystem, Well-Link Technologies raises $40 million in Series B2 financing round led by Temasek

- On September 26 Well-Link Technologies, a provider of real-time cloud rendering solutions, announced the completion of its $40 million B2 round of financing. This round of financing was led by Temasek, followed by existing shareholders Future Capital and CDH Venture and Growth Capital (VGC). This round of financing will help Well-Link to further improve the strategic layout of software and hardware integrated real-time cloud rendering capabilities, and accelerating the construction of next-gen computing and rendering architecture.

Founded in 2019, Well-Link has completed 5 rounds of financing in 3 years and has developed into the world's leading provider of real-time cloud rendering solutions. At a time when the global capital market is exercising cautiousness and hesitation, Well-Link successfully completes another round, thanks to its industry-leading solutions and forward-looking strategies.

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"Captain Tsubasa: Dream Team" Celebrates 1st Anniversary of NEXT DREAM Original Story from Yoichi Takahashi with In-Game Campaigns

- KLab Inc., a leader in online mobile games, announced that its head-to-head football simulation game Captain Tsubasa: Dream Team will celebrate the one year anniversary of NEXT DREAM, the original story by the author of "Captain Tsubasa" Yoichi Takahashi . See the original press release ( https:www.klab.comenpress ) for more information.

Captain Tsubasa: Dream Team will celebrate the one year anniversary of NEXT DREAM, the original story by the author of "Captain Tsubasa" Yoichi Takahashi. Be sure to check out the in-game notifications and official website for more details.

The story takes place after the Madrid Olympics in Captain Tsubasa Rising Sun , currently being serialized in the Grand Jump special edition Captain Tsubasa Magazine (Shueisha). It highlights the appearances of familiar characters in new roles and brand new characters every month in the game.

NEXT DREAM Official Website

https://www.tsubasa-dreamteam.com/en/next-dream/

There will be various in-game campaigns in celebration of the NEXT DREAM 1st anniversary including login bonuses, daily scenarios, event missions, special Transfers, and much more. Be sure to see the in-game notifications and official website for details.

NEXT DREAM Transfer

Natureza, S. Rams, and Madric of Madrid Blanco (NEXT DREAM) debut as new players. This is a Step-Up Transfer where 1 SSR player is guaranteed on Step 3 and 1 new SSR player is guaranteed on Step 5.

NEXT DREAM 1st Anniversary Transfer

J.J Ochado, Mbappa, and Raymar debut as new players in this Transfer! This is a Step-Up Transfer where 1 SSR player is guaranteed on Step 3 and 1 Pick-UP SSR player is guaranteed on Step 5.

Overview of Captain Tsubasa: Dream Team

Supported OSes: Android™ 4.4+, iOS 10.0+, HarmonyOS 2.0+

Genre: Head-to-head football simulation game

Price: Free-to-play (In-app purchases available)

Supported Regions: Global (Excludes Japan and Mainland China)

Official Website: https://www.tsubasa-dreamteam.com/en

Official Twitter Account: @tsubasaDT_en

Official Facebook Page: https://www.facebook.com/tsubasaDTen

Official YouTube Channel: https://www.youtube.com/channel/UCTgOPO7kIQ35YzB7SBIQoWQ/

Official Discord Channel: https://discord.gg/6tyEs48

Copyright: ©Yoichi Takahashi/SHUEISHA, ©Yoichi Takahashi/SHUEISHA/TV TOKYO/ENOKIFILM, © KLabGames

Download here:

App Store : https://itunes.apple.com/app/id1293738123

Google Play: https://play.google.com/store/apps/details?id=com.klab.captain283.global

AppGallery: https://appgallery.huawei.com/#/app/C105375049

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/captain-tsubasa-dream-team-celebrates-1st-anniversary-of-next-dream-original-story-from-yoichi-takahashi-with-in-game-campaigns-301632779.html

SOURCE KLab Inc.

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Kapital DAO, The Leader in Web3 Gaming Asset Management Tech, Announces Funding Support From Web3 Leaders Including Polygon Ventures, Solana Foundation, and Algorand Foundation

The round also comes with backing from major games and guilds, most notably YGG

The Kapital DAO announced today the close of its latest raise, with participation from Polygon Ventures, the Algorand Foundation, and the HBAR Foundation, with grants from the Solana Foundation and NEAR. Also involved were prominent investors such as Yield Guild Games (YGG), Samsung NEXT, GSR, Wintermute Ventures, Keyrock, and Portofino. Gaming strategic partners include Splinterlands, Shrapnel, and Blocklords. The Kapital DAO will also receive ongoing advisory from YGG and Floating Point Group (FPG) along with the leaders of Illuvium, Laguna Games, and Digital Insight Games (DIG). The DAO is expected to vote to drive the funding toward further development and scaling of its technology, which enables institutional-grade asset management for web3 gaming organizations. The Kapital DAO plans to deploy its technology closely with these strategic partners to increase the amount of institutional capital and players flowing through partnered ecosystems. This raise comes at a critical juncture as web3 gaming and large DAOs begin to focus on their key issues with scaling operations and security.

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