Dell Technologies announced today the company's fiscal 2023 second quarter financial report. The report shows that Dell’s total net revenue in the second quarter was $26.425 billion, an increase of 9% compared with $24.191 billion in the same period last year, setting a record ; net profit was $506 million, compared with $880 million in the same period last year Net income from continuing operations was $506 million, down 20 percent from $629 million a year earlier; net income attributable to Dell Technologies was $511 million, compared to $831 million in the same period last year That's down 39%.
Dell Technologies' second-quarter adjusted earnings beat Wall Street analysts' expectations, but revenue was slightly below analysts' expectations. After the earnings report was released, Dell Technologies shares fell sharply by nearly 6% after hours.
Main achievement:
In the quarter ended July 29, Dell Technologies' net profit was $506 million, down 43% from $880 million in the same period last year; net income from continuing operations was $506 million, down 43 percent from last year's Net income attributable to Dell Technologies was $511 million, down 39 percent from $831 million in the same period last year. Dell Technologies' second-quarter earnings per diluted share were $0.68, down 15% from $0.80 per diluted share in the same period last year.
Not in accordance with GAAP (excluding intangible asset amortization expense, tax impact, stock-based compensation expense and other one-time items), Dell Technologies adjusted net income for the fiscal second quarter was $1.266 billion, compared with $1.166 billion in the same period last year U.S. dollar up 9%; adjusted EPS of $1.68 was up 14% from $1.48 a year earlier, beating analyst expectations. According to data provided by Yahoo Finance Channel, 15 analysts had expected Dell Technologies' second-quarter adjusted earnings per share to reach $1.64 on average.
Dell Technologies' second-quarter net income from continuing operations as a percentage of total net revenue, or net profit margin, was 1.9%, compared with 2.6% in the same period last year. Excluding one-time items (not in accordance with GAAP), Dell Technologies adjusted net profit margin in the fiscal second quarter was 4.8%, unchanged from the same period last year.
Dell's total net revenue in the fiscal second quarter was $26.425 billion, an increase of 9% compared with $24.191 billion in the same period last year, a record. Excluding one-time items (not in accordance with US GAAP), Dell Technologies' second-quarter adjusted net revenue was also $26.425 billion, an increase of 9% compared with $24.199 billion in the same period last year, slightly less than analysts' expectations. . According to data provided by Yahoo Finance Channel, 13 analysts had expected Dell Technologies' second-quarter revenue to reach $26.49 billion on average.
Dell Technologies' second-quarter operating profit was $1.270 billion, up 25 percent from $1.017 billion a year earlier. Excluding one-time items (not in accordance with GAAP), Dell Technologies' second-quarter adjusted operating profit was $1.952 billion, up 4% from $1.868 billion a year earlier.
Dell Technologies' operating profit margin in the fiscal 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 Technologies' adjusted operating profit margin in the fiscal second quarter was 7.4%, compared with 7.7% in the same period last year.
Performance by business segment:
Dell Technologies' second-quarter product revenue was $20.810 billion, an increase of 10% compared with $18.895 billion in the same period last year; services revenue was $5.615 billion, an increase of 6% compared with $5.296 billion in the same period last year.
By specific business sector:
Dell Technologies revenue from the Infrastructure Solutions Group in the fiscal second quarter was $9.536 billion, an increase of 12% compared to $8.550 billion in the same period last year. Among them, server and networking business revenue was $5.209 billion, an increase of 16% compared with $4.480 billion in the same period last year; storage business revenue was $4.327 billion, an increase of 6% compared with $4.070 billion in the same period last year. The Infrastructure Solutions Group's operating profit for the fiscal second quarter was $1.046 billion, an increase of 9% year-on-year, and accounted for 11.0% of the group's revenue; compared with operating profit of $962 million in the same period last year, The proportion of the group's revenue was 11.3%.
Dell Technologies revenue from the Customer Solutions Group in the fiscal second quarter was $15.490 billion, up 9 percent from $14.268 billion in the same period last year. Among them, the revenue of the commercial sector was US$12.141 billion, an increase of 15% compared with US$10.577 billion in the same period last year; the revenue of the consumer sector was US$3.349 billion, a decrease of 9% compared with US$36.91 in the same period last year. Operating profit for the Client Solutions Group in the fiscal second quarter was $978 million, down 1% year-over-year, and accounted for 6.3% of the group's revenue; compared with operating profit of $986 million in the same period last year The proportion of group revenue was 6.9%.
Additional Financial Information:
Dell Technologies' total cost of revenue in the fiscal second quarter was $20.986 billion, an increase of 12% compared to $18.716 billion in the same period last year. Among them, the cost of product revenue was US$17.671 billion, an increase of 13% compared with US$15.692 billion in the same period last year; the cost of service revenue was US$3.315 billion, an increase of 10% compared with US$3.024 billion in the same period last year.
Dell Technologies' second-quarter gross profit was $5.439 billion, down 1 percent from $5.475 billion in the same period last year; gross profit margin was 20.6 percent, compared with 22.6 percent in the same period last year. Excluding one-time items (not in accordance with GAAP), Dell Technologies' second-quarter adjusted gross profit was $5.650 billion, essentially flat compared to $5.673 billion in the same period last year; adjusted gross profit margin was 21.4 %, compared with 23.4% a year earlier.
Dell Technologies' total operating expenses in the fiscal second quarter were $4.169 billion, down 6 percent from $4.458 billion in the same period last year. Among them, sales, general and administrative expenses were $3.543 billion, down 6% from $3.761 billion in the same period last year; research and development expenses were $626 million, down 10% compared with $697 million in the same period last year.
Dell Technologies total operating expenses as a percentage of total net revenue in the fiscal second quarter was 15.8%, compared with 18.4% in the same period last year. Among them, sales, general and administrative expenses accounted for 13.4% of total net revenue, compared with 15.5% in the same period last year; research and development expenses accounted for 2.4% of total net revenue, compared with The same period last year was 2.9%.
Dell's second-quarter net cash from operating activities was $724 million, compared with $1.725 billion in the same period last year.
At the end of the fiscal second quarter, Dell Technologies had $7.1 billion in cash and investments and $28 billion in deferred revenue.
At the end of the fiscal second quarter, Dell Technologies had remaining performance obligations of $41 billion, an increase of 2% compared to the same period last year.
Dell Technologies' second-quarter recurring revenue was approximately $5.2 billion, up 8% from the same period last year.
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