Shulou(Shulou.com)11/24 Report--

Beijing time August 26 news, Dell Technology today announced the company's fiscal year 2023 second quarter results. According to the report, Dell's total net revenue in the second quarter was $26.425 billion, up 9% from $24.191 billion in the same period last year, a record; net profit was $506 million, down 43% from $880 million in the same period last year; net profit from continuing operations was $506 million, down 20% from $629 million in the same period last year Net profit attributable to Dell Technologies was $511 million, down 39 per cent from $831 million in the same period last year.

Dell Technology's adjusted earnings per share in the second quarter beat Wall Street analysts' expectations, but revenue was slightly lower than analysts' expectations. Dell technology shares fell nearly 6% in after-hours trading after the announcement.

Main results: for the quarter ended July 29, Dell Technology's net profit was $506 million, down 43% from $880 million in the same period last year; net profit from continuing operations was $506 million, down 20% from $629 million in the same period last year; and net profit attributable to Dell Technology was $511 million, down 39% from $831 million in the same period last year. Dell Technology's diluted earnings per share in the second quarter were $0.68, down 15% from $0.80 a share in the same period last year.

Excluding general accounting principles (excluding amortization charges for intangible assets, tax effects, equity incentive expenses and other one-time items), Dell Technology's adjusted second-quarter net profit was $1.266 billion, up 9% from $1.166 billion in the same period last year. Adjusted earnings per share were $1.68, up 14% from $1.48 in the same period last year, exceeding analysts' expectations. On average, 15 analysts expected Dell's adjusted earnings per share to reach $1.64 in the second quarter, according to data provided by Yahoo Finance.

Net profit from Dell's continuing operations accounted for 1.9% of total net revenue (net profit margin) in the second quarter, compared with 2.6% in the same period last year. Excluding one-time items (not in accordance with GAAP), Dell's adjusted net profit margin for the second quarter was 4.8%, unchanged from the same period last year.

Dell's total net revenue in the second quarter was $26.425 billion, up 9% from $24.191 billion in the same period last year, a record. Excluding one-time items (not in accordance with GAAP), Dell's adjusted net income in the second quarter was also $26.425 billion, up 9% from $24.199 billion in the same period last year, slightly below analysts' expectations. On average, 13 analysts had expected Dell's second-quarter revenue to reach $26.49 billion, according to data provided by Yahoo Finance.

Dell Technology's second-quarter operating profit was $1.27 billion, up 25 per cent from $1.017 billion in the same period last year. Excluding one-time items (not in accordance with US GAAP), Dell Technology's adjusted operating profit in the second quarter was $1.952 billion, up 4 per cent from $1.868 billion in the same period last year.

Dell's operating margin in the second quarter was 4.8%, compared with 4.2% in the same period last year. Excluding one-time items (not in accordance with GAAP), Dell's adjusted operating margin in the second quarter was 7.4%, compared with 7.7% in the same period last year.

Results by business unit: Dell Technology's second-quarter product revenue was $20.81 billion, up 10% from $18.895 billion in the same period last year, and service revenue was $5.615 billion, up 6% from $5.296 billion in the same period last year.

By business unit:-Dell Technology's revenue from infrastructure solutions groups in the second quarter was $9.536 billion, up 12% from $8.55 billion in the same period last year. Of this total, revenue from the server and networking business was $5.209 billion, up 16 per cent from $4.48 billion in the same period last year, while revenue from the storage business was $4.327 billion, up 6 per cent from $4.07 billion in the same period last year. Infrastructure Solutions Group's second-quarter operating profit was $1.046 billion, up 9 per cent from a year earlier and accounted for 11.0 per cent of the group's revenue, compared with $962 million in the same period last year and 11.3 per cent of the group's revenue.

-Dell Technology's revenue from customer solutions groups in the second quarter was $15.49 billion, up 9% from $14.268 billion in the same period last year. Of this total, revenue from the commercial sector was $12.141 billion, up 15 per cent from $10.577 billion in the same period last year, while revenue from the consumer sector was $3.349 billion, down 9 per cent from $36.91 in the same period last year. Customer Solutions Group's second-quarter operating profit was $978 million, down 1 per cent from a year earlier and accounting for 6.3 per cent of the group's revenue, compared with $986 million in the same period last year and 6.9 per cent of the group's revenue.

Other financial information: Dell Technology's total revenue cost in the second quarter was $20.986 billion, up 12% from $18.716 billion in the same period last year. Of this total, the revenue cost of products was $17.671 billion, up 13 per cent from $15.692 billion in the same period last year, and the revenue cost of services was $3.315 billion, up 10 per cent from $3.024 billion in the same period last year.

Dell Technologies' second-quarter gross profit was $5.439 billion, down 1% from $5.475 billion in the same period last year, and its gross margin was 20.6%, compared with 22.6% in the same period last year. Excluding one-time items (not in accordance with GAAP), Dell Technology's adjusted gross profit in the second quarter was $5.65 billion, roughly the same as the $5.673 billion in the same period last year, and the adjusted gross margin was 21.4%. Compared with 23.4% in the same period last year.

Dell's total operating expenses in the second quarter were $4.169 billion, down 6 per cent from $4.458 billion in the same period last year. Of this total, sales, general and administrative expenses were $3.543 billion, down 6 per cent from $3.761 billion in the same period last year, and R & D expenditure was $626 million, down 10 per cent from $697 million in the same period last year.

Dell's total operating expenses accounted for 15.8% of total net revenue in the second quarter, compared with 18.4% in the same period last year. Of this total, sales, general and administrative expenses accounted for 13.4 per cent of total net revenue, compared with 15.5 per cent in the same period last year, and R & D expenditure accounted for 2.4 per cent of total net revenue, compared with 2.9 per cent in the same period last year.

Dell's net cash from business operations in the second quarter was $724 million, compared with $1.725 billion in the same period last year.

At the end of the second quarter, Dell Technology held a total of $7.1 billion in cash and investments and $28 billion in deferred operations.

At the end of the second quarter, Dell Technology's remaining performance obligations were $41 billion, up 2 per cent from the same period last year.

Dell's recurrent revenue in the second quarter was about $5.2 billion, up 8 per cent from the same period last year.

Share price reaction: Dell technology shares rose $1.28, or 2.75%, to close at $47.90 in regular trading on the New York Stock Exchange. Dell shares fell $2.75, or 5.74%, to $45.15 in after-hours trading as of 06:04 EDT on the 25th (06:04 Beijing time on the 26th). In the past 52 weeks, the highest price for Dell Technology is $61.54 and the lowest price is $38.33.

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