Technology
Dell Technologies Delivers Fourth Quarter and Full Year Fiscal 2024 Financial Results
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2 years agoon
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News summary
Fourth quarter revenue of $22.3 billion and full-year revenue of $88.4 billionFull-year operating income of $5.2 billion and non-GAAP operating income of $7.7 billionFull-year cash flow from operations of $8.7 billionFull-year diluted earnings per share of $4.36 and non-GAAP diluted earnings per share of $7.13Announcing a 20% increase in annual cash dividend to $1.78 per common share
ROUND ROCK, Texas, Feb. 29, 2024 /PRNewswire/ —
Full story
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2024 fourth quarter and full year. Fourth quarter revenue was $22.3 billion, down 11% year over year. Operating income was $1.5 billion and non-GAAP operating income was $2.1 billion, up 25% and down 1% year over year, respectively. Cash flow from operations was $1.5 billion. Diluted earnings per share was $1.59, and non-GAAP diluted earnings per share was $2.20, up 89% and 22% year over year, respectively.
Revenue for the year was $88.4 billion, down 14% from fiscal year 2023. Operating income was $5.2 billion and non-GAAP operating income was $7.7 billion, down 10% and 11% year over year, respectively. Cash flow from operations for the full year was $8.7 billion. Full-year diluted earnings per share was $4.36, and non-GAAP diluted earnings per share was $7.13, up 35% and down 6% year over year, respectively.
Cash and investments were $9.0 billion, and Dell reached its core leverage target of 1.5x exiting the fiscal year. Dell is increasing its annual cash dividend by 20% to $1.78 per common share, with $0.445 per common share for the first quarterly distribution payable on May 3 to shareholders of record as of April 23.
“We generated $8.7 billion in cash flow from operations this fiscal year, returning $7 billion to shareholders since Q1 FY23,” said Yvonne McGill, chief financial officer, Dell Technologies. “We’re optimistic about FY25 and are increasing our annual dividend by 20% – a testament to our confidence in the business and ability to generate strong cash flow.”
Fourth Quarter Fiscal 2024 Financial Results
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
Change
February 2,
2024
February 3,
2023
Change
(in millions, except per share amounts and percentages; unaudited)
Net revenue
$ 22,318
$ 25,039
(11) %
$ 88,425
$ 102,301
(14) %
Operating income
$ 1,491
$ 1,189
25 %
$ 5,211
$ 5,771
(10) %
Net income
$ 1,158
$ 606
91 %
$ 3,195
$ 2,422
32 %
Earnings per share – diluted
$ 1.59
$ 0.84
89 %
$ 4.36
$ 3.24
35 %
Non-GAAP operating income
$ 2,139
$ 2,170
(1) %
$ 7,678
$ 8,637
(11) %
Non-GAAP net income
$ 1,610
$ 1,322
22 %
$ 5,245
$ 5,727
(8) %
Adjusted free cash flow
$ 1,010
$ 2,267
(55) %
$ 5,607
$ 1,533
266 %
Non-GAAP earnings per share – diluted
$ 2.20
$ 1.80
22 %
$ 7.13
$ 7.61
(6) %
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.
Infrastructure Solutions Group (ISG) delivered fourth quarter revenue of $9.3 billion, up 10% sequentially and down 6% year over year. Servers and networking revenue was $4.9 billion, with sequential growth driven primarily by AI-optimized servers. Storage revenue was $4.5 billion, up 16% sequentially with demand strength across the portfolio. Operating income was $1.4 billion. Full-year ISG revenue was $33.9 billion, down 12% year over year, and full-year operating income was $4.3 billion, down 15% year over year.
Client Solutions Group (CSG) delivered fourth quarter revenue of $11.7 billion, down 5% sequentially and 12% year over year. Commercial client revenue was $9.6 billion, and Consumer revenue was $2.2 billion. Operating income was $726 million. Full-year CSG revenue was $48.9 billion, down 16% year over year, and full-year operating income was $3.5 billion, down 8% year over year.
“Our strong AI-optimized server momentum continues, with orders increasing nearly 40% sequentially and backlog nearly doubling, exiting our fiscal year at $2.9 billion,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “We’ve just started to touch the AI opportunities ahead of us, and we believe Dell is uniquely positioned with our broad portfolio to help customers build GenAI solutions that meet performance, cost and security requirements.”
Dell continues to expand its portfolio to help customers meet their performance, cost and security requirements across clouds, on premises and at the edge:
Expanded the Dell Generative AI Solutions portfolio with support for the AMD Instinct™ MI300X accelerator in Dell PowerEdge XE9680 servers and the new Dell Validated Design for Generative AI with AMD ROCm™ powered AI frameworks.Introduced new enterprise data storage advancements and planned validation with the NVIDIA DGX SuperPOD AI infrastructure, helping customers quickly access data for AI workloads with Dell PowerScale systems.Announced Dell will have the broadest portfolio of commercial AI laptops and mobile workstations, which feature built-in AI acceleration with the addition of the neural processing unit (NPU). New XPS systems also feature the NPU, helping to improve performance, productivity and collaboration.Forged partnership with Nokia to serve as its preferred infrastructure partner for Nokia AirFrame customers, transitioning them to Dell PowerEdge servers with Dell global services and support. Dell will also offer Nokia’s Digital Automation Cloud solution with Dell NativeEdge to provide a comprehensive, scalable solution for enterprises.
Operating Segments Results
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
Change
February 2,
2024
February 3,
2023
Change
(in millions, except percentages; unaudited)
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking
$ 4,857
$ 4,940
(2) %
$ 17,624
$ 20,398
(14) %
Storage
4,475
4,965
(10) %
16,261
17,958
(9) %
Total ISG net revenue
$ 9,332
$ 9,905
(6) %
$ 33,885
$ 38,356
(12) %
Operating Income:
ISG operating income
$ 1,428
$ 1,543
(7) %
$ 4,286
$ 5,045
(15) %
% of ISG net revenue
15.3 %
15.6 %
12.6 %
13.2 %
% of total reportable segment operating income
66 %
70 %
55 %
57 %
Client Solutions Group (CSG):
Net revenue:
Commercial
$ 9,563
$ 10,697
(11) %
$ 39,814
$ 45,556
(13) %
Consumer
2,152
2,664
(19) %
9,102
12,657
(28) %
Total CSG net revenue
$ 11,715
$ 13,361
(12) %
$ 48,916
$ 58,213
(16) %
Operating Income:
CSG operating income
$ 726
$ 671
8 %
$ 3,512
$ 3,824
(8) %
% of CSG net revenue
6.2 %
5.0 %
7.2 %
6.6 %
% of total reportable segment operating income
34 %
30 %
45 %
43 %
Conference call information
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on Feb. 29 at 3:30 p.m. CST. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to financial guidance may be downloaded from investors.delltechnologies.com. The conference call will be broadcast live over the internet and can be accessed at https://investors.delltechnologies.com/news-events/upcoming-events
For those unable to listen to the live broadcast, the final remarks and presentation with financial guidance will be available following the broadcast, and an archived version will be available at the same location for one year.
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. 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 © 2024 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 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., non-GAAP earnings per share attributable to Dell Technologies Inc. – diluted, free cash flow, and adjusted free cash flow 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: adverse global economic conditions and instability in financial markets; 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; Dell Technologies’ execution of its strategy; 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’ ability to successfully execute on strategic initiatives including acquisitions, divestitures or cost savings measures; 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; adverse 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; expectations relating to environmental, social and governance (ESG) considerations; compliance requirements of changing environmental and safety laws, human rights laws, or other laws; the effect of armed hostilities, terrorism, natural disasters, or 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; 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 February 3, 2023, 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.
DELL TECHNOLOGIES INC.
Consolidated Statements of Income and Related Financial Highlights
(in millions, except percentages; unaudited)
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
Change
February 2,
2024
February 3,
2023
Change
Net revenue:
Products
$ 16,149
$ 19,038
(15) %
$ 64,353
$ 79,250
(19) %
Services
6,169
6,001
3 %
24,072
23,051
4 %
Total net revenue
22,318
25,039
(11) %
88,425
102,301
(14) %
Cost of net revenue:
Products
13,393
15,748
(15) %
53,316
66,029
(19) %
Services
3,609
3,535
2 %
14,240
13,586
5 %
Total cost of net revenue
17,002
19,283
(12) %
67,556
79,615
(15) %
Gross margin
5,316
5,756
(8) %
20,869
22,686
(8) %
Operating expenses:
Selling, general, and administrative
3,109
3,772
(18) %
12,857
14,136
(9) %
Research and development
716
795
(10) %
2,801
2,779
1 %
Total operating expenses
3,825
4,567
(16) %
15,658
16,915
(7) %
Operating income
1,491
1,189
25 %
5,211
5,771
(10) %
Interest and other, net
(203)
(266)
24 %
(1,324)
(2,546)
48 %
Income before income taxes
1,288
923
40 %
3,887
3,225
21 %
Income tax expense
130
317
(59) %
692
803
(14) %
Net income
1,158
606
91 %
3,195
2,422
32 %
Less: Net loss attributable to non-controlling interests
(2)
(8)
75 %
(16)
(20)
20 %
Net income attributable to Dell Technologies Inc.
$ 1,160
$ 614
89 %
$ 3,211
$ 2,442
31 %
Percentage of Total Net Revenue:
Gross margin
23.8 %
23.0 %
23.6 %
22.2 %
Selling, general, and administrative
13.9 %
15.1 %
14.5 %
13.9 %
Research and development
3.2 %
3.2 %
3.2 %
2.7 %
Operating expenses
17.1 %
18.3 %
17.7 %
16.6 %
Operating income
6.7 %
4.7 %
5.9 %
5.6 %
Income before income taxes
5.8 %
3.7 %
4.4 %
3.2 %
Net income
5.2 %
2.4 %
3.6 %
2.4 %
Income tax rate
10.1 %
34.3 %
17.8 %
24.9 %
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)
February 2, 2024
February 3, 2023
ASSETS
Current assets:
Cash and cash equivalents
$ 7,366
$ 8,607
Accounts receivable, net of allowance of $71 and $78
9,343
12,482
Due from related party, net
—
378
Short-term financing receivables, net of allowance of $79 and $142
4,643
5,281
Inventories
3,622
4,776
Other current assets
10,957
10,827
Current assets held for sale
16
—
Total current assets
35,947
42,351
Property, plant, and equipment, net
6,432
6,209
Long-term investments
1,316
1,518
Long-term financing receivables, net of allowance of $91 and $59
5,877
5,638
Goodwill
19,700
19,676
Intangible assets, net
5,701
6,468
Due from related party, net
—
440
Other non-current assets
7,116
7,311
Total assets
$ 82,089
$ 89,611
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt
$ 6,982
$ 6,573
Accounts payable
19,389
18,598
Due to related party
—
2,067
Accrued and other
6,805
8,874
Short-term deferred revenue
15,318
15,542
Total current liabilities
48,494
51,654
Long-term debt
19,012
23,015
Long-term deferred revenue
13,827
14,744
Other non-current liabilities
3,065
3,223
Total liabilities
84,398
92,636
Stockholders’ equity (deficit):
Total Dell Technologies Inc. stockholders’ equity (deficit)
(2,404)
(3,122)
Non-controlling interests
95
97
Total stockholders’ equity (deficit)
(2,309)
(3,025)
Total liabilities and stockholders’ equity
$ 82,089
$ 89,611
DELL TECHNOLOGIES INC.
Consolidated Statements of Cash Flows
(in millions; unaudited)
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
February 2,
2024
February 3,
2023
Cash flows from operating activities:
Net income
$ 1,158
$ 606
$ 3,195
$ 2,422
Adjustments to reconcile net income to net cash provided by
operating activities:
375
2,108
5,481
1,143
Change in cash from operating activities
1,533
2,714
8,676
3,565
Cash flows from investing activities:
Purchases of investments
(29)
(7)
(172)
(108)
Maturities and sales of investments
76
17
226
116
Capital expenditures and capitalized software development
costs
(727)
(759)
(2,756)
(3,003)
Acquisition of businesses and assets, net
1
(70)
(126)
(70)
Other
10
23
45
41
Change in cash from investing activities
(669)
(796)
(2,783)
(3,024)
Cash flows from financing activities:
Proceeds from the issuance of common stock
2
—
10
5
Repurchases of common stock
(878)
(165)
(2,080)
(2,883)
Repurchases of common stock for employee tax withholdings
(18)
(18)
(372)
(398)
Payments of dividends and dividend equivalents
(261)
(236)
(1,072)
(964)
Proceeds from debt
871
3,700
7,775
12,479
Repayments of debt
(1,480)
(1,746)
(11,246)
(9,825)
Debt-related costs and other, net
(55)
(22)
(109)
(39)
Change in cash from financing activities
(1,819)
1,513
(7,094)
(1,625)
Effect of exchange rate changes on cash, cash
equivalents, and restricted cash
14
239
(186)
(104)
Change in cash, cash equivalents, and restricted cash
(941)
3,670
(1,387)
(1,188)
Cash, cash equivalents, and restricted cash at beginning of the
period
8,448
5,224
8,894
10,082
Cash, cash equivalents, and restricted cash at end of the
period
$ 7,507
$ 8,894
$ 7,507
$ 8,894
DELL TECHNOLOGIES INC.
Segment Information
(in millions, except percentages; unaudited; continued on next page)
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
Change
February 2,
2024
February 3,
2023
Change
Infrastructure Solutions Group (ISG):
Net revenue:
Servers and networking
$ 4,857
$ 4,940
(2) %
$ 17,624
$ 20,398
(14) %
Storage
4,475
4,965
(10) %
16,261
17,958
(9) %
Total ISG net revenue
$ 9,332
$ 9,905
(6) %
$ 33,885
$ 38,356
(12) %
Operating Income:
ISG operating income
$ 1,428
$ 1,543
(7) %
$ 4,286
$ 5,045
(15) %
% of ISG net revenue
15.3 %
15.6 %
12.6 %
13.2 %
% of total reportable segment operating income
66 %
70 %
55 %
57 %
Client Solutions Group (CSG):
Net revenue:
Commercial
$ 9,563
$ 10,697
(11) %
$ 39,814
$ 45,556
(13) %
Consumer
2,152
2,664
(19) %
9,102
12,657
(28) %
Total CSG net revenue
$ 11,715
$ 13,361
(12) %
$ 48,916
$ 58,213
(16) %
Operating Income:
CSG operating income
$ 726
$ 671
8 %
$ 3,512
$ 3,824
(8) %
% of CSG net revenue
6.2 %
5.0 %
7.2 %
6.6 %
% of total reportable segment operating income
34 %
30 %
45 %
43 %
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
Fiscal Year Ended
February 2,
2024
February 3,
2023
February 2,
2024
February 3,
2023
Reconciliation to consolidated net revenue:
Reportable segment net revenue
$ 21,047
$ 23,266
$ 82,801
$ 96,569
Other businesses (a)
1,269
1,770
5,614
5,721
Unallocated transactions (b)
2
3
10
11
Total consolidated net revenue
$ 22,318
$ 25,039
$ 88,425
$ 102,301
Reconciliation to consolidated operating income:
Reportable segment operating income
$ 2,154
$ 2,214
$ 7,798
$ 8,869
Other businesses (a)
(17)
(48)
(129)
(240)
Unallocated transactions (b)
2
4
9
8
Impact of purchase accounting (c)
(4)
(11)
(14)
(44)
Amortization of intangibles
(206)
(238)
(819)
(970)
Transaction-related expenses (d)
(3)
(6)
(12)
(22)
Stock-based compensation expense (e)
(203)
(228)
(878)
(931)
Other corporate expenses (f)
(232)
(498)
(744)
(899)
Total consolidated operating income
$ 1,491
$ 1,189
$ 5,211
$ 5,771
_________________
(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. From time to time, this category also may include transaction-related income related to divestitures of businesses or asset sales.
(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 severance, impairment charges, incentive charges related to equity investments, payroll taxes associated with stock-based compensation, facilities action, and other costs.
SUPPLEMENTAL SELECTED NON-GAAP FINANCIAL MEASURES
These tables present information about the Company’s 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., non-GAAP earnings per share attributable to Dell Technologies Inc. – diluted, free cash flow and adjusted free cash flow, 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 Financial Measures
(in millions, except per share amounts and percentages; unaudited)
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
%
Change
February 2,
2024
February 3,
2023
Change
Net revenue (a)
$ 22,318
$ 25,039
(11) %
$ 88,425
$ 102,301
(14) %
Non-GAAP gross margin
$ 5,468
$ 5,971
(8) %
$ 21,444
$ 23,427
(8) %
% of non-GAAP net revenue
24.5 %
23.8 %
24.3 %
22.9 %
Non-GAAP operating expenses
$ 3,329
$ 3,801
(12) %
$ 13,766
$ 14,790
(7) %
% of non-GAAP net revenue
14.9 %
15.1 %
15.6 %
14.5 %
Non-GAAP operating income
$ 2,139
$ 2,170
(1) %
$ 7,678
$ 8,637
(11) %
% of non-GAAP net revenue
9.6 %
8.7 %
8.7 %
8.4 %
Non-GAAP net income
$ 1,610
$ 1,322
22 %
$ 5,245
$ 5,727
(8) %
% of non-GAAP net revenue
7.2 %
5.3 %
5.9 %
5.6 %
Non-GAAP earnings per share – diluted
$ 2.20
$ 1.80
22 %
$ 7.13
$ 7.61
(6) %
____________________
(a)
Effective in the first quarter of Fiscal 2023, non-GAAP net revenue no longer differs from net revenue, the most comparable GAAP financial measure.
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
Fiscal Year Ended
February 2,
2024
February 3,
2023
%
Change
February 2,
2024
February 3,
2023
%
Change
Gross margin
$ 5,316
$ 5,756
(8) %
$ 20,869
$ 22,686
(8) %
Non-GAAP adjustments:
Amortization of intangibles
84
99
331
414
Impact of purchase accounting
—
—
—
2
Stock-based compensation expense
37
40
149
152
Other corporate expenses
31
76
95
173
Non-GAAP gross margin
$ 5,468
$ 5,971
(8) %
$ 21,444
$ 23,427
(8) %
Operating expenses
$ 3,825
$ 4,567
(16) %
$ 15,658
$ 16,915
(7) %
Non-GAAP adjustments:
Amortization of intangibles
(122)
(139)
(488)
(556)
Impact of purchase accounting
(4)
(11)
(14)
(42)
Transaction-related expenses
(3)
(6)
(12)
(22)
Stock-based compensation expense
(166)
(188)
(729)
(779)
Other corporate expenses
(201)
(422)
(649)
(726)
Non-GAAP operating expenses
$ 3,329
$ 3,801
(12) %
$ 13,766
$ 14,790
(7) %
Operating income
$ 1,491
$ 1,189
25 %
$ 5,211
$ 5,771
(10) %
Non-GAAP adjustments:
Amortization of intangibles
206
238
819
970
Impact of purchase accounting
4
11
14
44
Transaction-related expenses
3
6
12
22
Stock-based compensation expense
203
228
878
931
Other corporate expenses
232
498
744
899
Non-GAAP operating income
$ 2,139
$ 2,170
(1) %
$ 7,678
$ 8,637
(11) %
Net income
$ 1,158
$ 606
91 %
$ 3,195
$ 2,422
32 %
Non-GAAP adjustments:
Amortization of intangibles
206
238
819
970
Impact of purchase accounting
4
11
14
44
Transaction-related (income) expenses
(5)
(14)
49
(16)
Stock-based compensation expense
203
228
878
931
Other corporate expenses
232
392
744
1,812
Fair value adjustments on equity investments
(83)
9
(47)
206
Aggregate adjustment for income taxes
(105)
(148)
(407)
(642)
Non-GAAP net income
$ 1,610
$ 1,322
22 %
$ 5,245
$ 5,727
(8) %
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(unaudited; continued)
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
%
Change
February 2,
2024
February 3,
2023
%
Change
Earnings per share attributable to Dell
Technologies, Inc. – diluted
$ 1.59
$ 0.84
89 %
$ 4.36
$ 3.24
35 %
Non-GAAP adjustments:
Amortization of intangibles
0.28
0.32
1.11
1.29
Impact of purchase accounting
0.01
0.01
0.02
0.06
Transaction-related (income) expenses
(0.01)
(0.02)
0.07
(0.02)
Stock-based compensation expense
0.28
0.31
1.19
1.24
Other corporate expenses
0.32
0.53
1.01
2.41
Fair value adjustments on equity
investments
(0.11)
0.01
(0.06)
0.27
Aggregate adjustment for income taxes
(0.15)
(0.19)
(0.55)
(0.86)
Total non-GAAP adjustments attributable
to non-controlling interests
(0.01)
(0.01)
(0.02)
(0.02)
Non-GAAP earnings per share
attributable to Dell Technologies, Inc. –
diluted
$ 2.20
$ 1.80
22 %
$ 7.13
$ 7.61
(6) %
DELL TECHNOLOGIES INC.
Reconciliation of Selected Non-GAAP Financial Measures
(in millions, except percentages; unaudited; continued)
Three Months Ended
Fiscal Year Ended
February 2,
2024
February 3,
2023
%
Change
February 2,
2024
February 3,
2023
%
Change
Cash flow from operations
$ 1,533
$ 2,714
(44) %
$ 8,676
$ 3,565
143 %
Non-GAAP adjustments:
Capital expenditures and capitalized
software development costs, net (a)
(727)
(749)
(2,753)
(2,993)
Free cash flow
$ 806
$ 1,965
(59) %
$ 5,923
$ 572
935 %
Free cash flow
$ 806
$ 1,965
(59) %
$ 5,923
$ 572
935 %
Non-GAAP adjustments:
DFS financing receivables (b)
136
175
(309)
461
DFS operating leases (c)
68
127
(7)
500
Adjusted free cash flow
$ 1,010
$ 2,267
(55) %
$ 5,607
$ 1,533
266 %
____________________
(a)
Capital expenditures and capitalized software development costs is net of proceeds from sales of facilities, land, and other assets.
(b)
DFS financing receivables represents the operating cash flow impact from the change in financing receivables.
(c)
DFS operating leases represents the change in net carrying value of equipment for DFS operating leases.
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SOURCE Dell Technologies
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Global Times: Head-of-state diplomacy shines at WAIC, fostering ties and advancing global governance consensus
Published
3 hours agoon
July 18, 2026By
BEIJING, July 17, 2026 /PRNewswire/ — Chinese President Xi Jinping on Friday held a series of high-level meetings on the sidelines of the 2026 World Artificial Intelligence Conference (WAIC) and High-Level Meeting on Global AI Governance in Shanghai, sitting down successively with Thai Prime Minister Anutin Charnvirakul, Cambodian Prime Minister Hun Manet, and UN Secretary-General António Guterres. The bustling diplomatic activity transformed the WAIC from a premier showcase of AI technologies and industrial breakthroughs into a vibrant platform for head-of-state diplomacy and global governance coordination.
Analysts said hosting intensive head-of-state diplomatic events in Shanghai, a core hub of reform, opening-up and technological innovation, carries profound meaning. In addition, Friday’s high-level meetings embody the innovative model of “technology builds the stage while diplomacy takes the leading role.” It not only deepens China’s bilateral relations with ASEAN members, but also helps advance inclusive global AI governance centered on the UN mechanism.
Strategic guidance
According to the two separate official releases by Xinhua, during his meetings with the prime ministers of Thailand and Cambodia, President Xi spoke of the long-standing friendship China shares with both nations. He called on China and Thailand, as well as China and Cambodia, to join hands to advance the development of their respective communities with a shared future.
Furthermore, the Chinese leader stressed the need for China to expand pragmatic cooperation with Thailand and Cambodia respectively across traditional and emerging sectors, and work with each country to jointly crack down on cross-border crimes such as online gambling and telecom fraud, according to Xinhua.
He called for the proper handling of border frictions between Thailand and Cambodia and called on the two sides to resolve disputes through dialogue and consultation, with China standing ready to continue playing a constructive role in this regard, per Xinhua.
During their respective meetings with the Chinese leader, the prime ministers of Thailand and Cambodia both expressed willingness to deepen multi-field cooperation with China and spoke highly of China’s positive efforts to facilitate the peaceful settlement of the Thailand-Cambodia border conflicts.
Xu Liping, Director of the Center for Southeast Asian Studies at the Chinese Academy of Social Sciences, told the Global Times that head-of-state diplomacy has charted the fundamental course for the advancement of China’s ties with both Cambodia and Thailand.
WAIC exemplifies the innovative model of “technology builds the platform, while diplomacy takes the leading role,” said Xu, “In addition, AI cooperation is also expected to serve as a vital entry point to further deepen and substantiate China’s ties with Thailand and Cambodia going forward.”
Furthermore, addressing the sensitive and thorny Thailand-Cambodia border dispute amid the relatively relaxed atmosphere of a tech summit enables all relevant parties to handle differences in a rational and pragmatic manner, which embodies Eastern wisdom and an Asian approach to resolving issues, said Xu.
The year 2026 marks the fifth anniversary of the establishment of the China-ASEAN comprehensive strategic partnership, witnessing the official rollout of the new Plan of Action on the China-ASEAN Comprehensive Strategic Partnership (2026-2030). It also kicks off the implementation of China’s 15th Five-Year Plan.
The critical juncture offers a perfect window to align China’s development plans closely with the national development strategies of Global South countries and ASEAN members, said Xu. “Thailand and Cambodia’s willingness to ramp up cooperation with China mirrors the aspiration of the majority of ASEAN members to leverage China’s development dividends and pursue win-win outcomes and common prosperity in the region.”
Firm support for UN
In his meeting with UN Secretary-General Antonio Guterres on Friday, Xi reiterated China’s firm support for the UN.
Noting that this year marks the 55th anniversary of the restoration of the lawful seat of the People’s Republic of China at the UN, the Chinese leader said China has since been committed to building world peace, contributing to global development, defending international order, and firmly supporting the UN, Xinhua reported.
Xi added that he proposed the vision of building a community with a shared future for humanity and the four global initiatives with one important consideration in mind – to uphold the status and authority of the UN.
Currently, the international landscape is marked by more pronounced changes and turbulence, making it all the more necessary to practice true multilateralism and reinvigorate the status and role of the UN, he said.
Guterres commended China for its steadfast support for multilateralism, the cause of the UN, and international cooperation, saying that China has set an example for the world.
Guterres said the UN will continue to strengthen cooperation with China, oppose unilateralism, protectionism, and hegemonic bullying, safeguard the UN Charter and international law, as well as advance the process toward a multipolar world.
At this pivotal juncture where talks on AI development and UN multilateral governance converge, China, leveraging head-of-state diplomacy as a top-tier platform, has elaborated in a systematic manner its vision for global governance in the AI era, Wang Yiwei, a professor at the School of International Studies, Renmin University of China, told the Global Times.
He added that China’s emphasis on the UN-centered global governance architecture will further strengthen the UN’s authority and operational capacity.
Before the official opening of the WAIC, on Thursday, representatives from 29 countries, including Kazakhstan, Laos, Pakistan, Russia and Indonesia, signed an agreement on establishing the World Artificial Intelligence Cooperation Organization (WAICO) in Shanghai. UN chief Guterres was among representatives from countries and international organizations present at the signing ceremony.
According to the agreement, WAICO will be an independent intergovernmental international organization, which aims to promote international cooperation and global governance on AI, ensuring that AI is beneficial, safe and fair, thereby promoting its healthy and orderly development to benefit all humanity.
President Xi on Friday also announced that in the next five years, China will provide developing countries with 5,000 opportunities in AI training and seminar programs. China will also develop international AI application cooperation centers with the ASEAN, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization, and BRICS.
However, some international media, including Reuters and Nikkei, used the term “AI diplomacy” describing the grand gathering in Shanghai, claiming that Beijing seeks a new global AI order, challenging US dominance.
In rebuttal, Wang pointed out that China advocates open, inclusive technology that lets AI benefit all humanity under the vision of “AI for All”. In contrast, the US adheres to a mindset of “All for AI”, weaponizing AI for geopolitical rivalry and aiming to outpace China in technological competition. Driven by the “America First” doctrine and capital-centric priorities, Washington’s approach forms a sharp contrast with China’s.
Meanwhile, China’s resolute commitment to upholding the UN system underscores that for China and a wide array of Global South countries, the sensible path lies in reforming and improving the existing global governance architecture rather than discarding it to build parallel institutions from scratch, the expert added.
This article first appeared on Global Times
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SOURCE Global Times
Technology
Global Times: China sends fresh signal on global AI cooperation at WAIC
Published
3 hours agoon
July 18, 2026By
BEIJING, July 17, 2026 /PRNewswire/ — “AI development should not be a solo performance by a single country, but a symphony of international cooperation,” Chinese President Xi Jinping said on Friday while addressing the opening ceremony of the 2026 World AI Conference (WAIC) and High-Level Meeting on Global AI Governance, stressing that China is ready to be more open, take more practical actions, and assume a more visionary perspective.
We are ready to work with all parties to seize the opportunities of AI development and meet the challenges, and join hands to create a brighter future for humanity, he added.
Xi’s remarks received positive responses from domestic and foreign enterprises and experts, as they spoke highly of China’s scientific and technological achievements in recent years while noting that China’s commitment to openness and cooperation can help ensure that the benefits of AI are shared by all humanity and Chinese solutions in AI governance enable other countries to better tackle the common challenges brought about by AI development.
Openness and win-win cooperation
Xi presented four observations on AI development and governance in the speech. The Chinese leader called for adhering to the principle of openness and win-win cooperation while boosting innovation-driven development. He highlighted the importance of encouraging open-source, openness, collaboration and sharing to facilitate technological innovation, industrial development and scenario-based application of AI.
He also called for strengthening risk-awareness and ensuring that AI is secure and controllable. Stressing the need to ensure that AI is always under human control, Xi urged all sides to jointly oppose overstretching the national security concept in the field of AI or placing one country’s security over that of others.
Third, he called for encouraging inclusiveness and promoting mutual learning among civilizations.
Fourth, he called for advocating solidarity and improving global governance. The important role of the United Nations should be recognized, Xi said, calling for further alignment and coordination on AI development strategies, governance rules and technical standards.
“We must carry out extensive international cooperation and help Global South countries with capacity building to bridge the AI and digital divides, promote sustainable development and prevent creating new historical injustice in AI,” he said.
In the next five years, China will provide developing countries with 5,000 opportunities in AI training and seminar programs, Xi said. He said China will develop international AI application cooperation centers with the Association of Southeast Asian Nations, the League of Arab States, the African Union, the Community of Latin American and Caribbean States, the Shanghai Cooperation Organization, and BRICS. China will enable 30 countries to use the AI-powered meteorological warning system, or MAZU, to safeguard homes around the world.
“President Xi’s remarks underscore China’s commitment to advancing global AI governance and technological innovation through opening-up and win-win cooperation, bringing new opportunities for sharing AI dividends and achieving shared prosperity to countries worldwide, especially developing countries,” Song Yang, professor of School of Economics and research fellow at the National Academy of Development and Strategy at Renmin University of China, told the Global Times on Friday.
China is sending a clear and important message: AI should become a bridge between countries, not a new dividing line, Luigi Gambardella, president of the Brussels-based international digital association ChinaEU, told the Global Times on Friday on the sidelines of the forum.
“No country, however technologically advanced, can develop and govern AI alone. China’s commitment to openness and cooperation can help ensure that the benefits of AI are shared by all humanity. It can help prevent the fragmentation of technologies, standards and markets, while ensuring that the opportunities created by AI are shared more widely,” Gambardella said.
“President Xi proposed ‘adhering to the principle of openness and win-win cooperation’ and ‘advocating solidarity’, and announced a series of pragmatic measures to support global AI development. These remarks have deeply inspired me and further strengthened my confidence in promoting the inclusive development of AI through opening-up and cooperation,” Xu Li, chairman and CEO of Shanghai-based AI software company SenseTime, told the Global Times on Friday.
Looking ahead, SenseTime aims to bring more field-tested technologies, products, and talent cultivation expertise to more countries and regions, and boost “China innovation” to deliver sustained value across a wider spectrum of industrial scenarios, thereby enabling AI to better benefit all of humanity, Xu said.
China actively supports strengthening global cooperation on AI governance, advocates multilateralism, and promotes the establishment of a global governance framework, which has received positive responses from many Global South countries.
Twenty-nine countries on Thursday signed an agreement in Shanghai on establishing the World Artificial Intelligence Cooperation Organization (WAICO). As an independent intergovernmental international organization headquartered in Shanghai, WAICO will uphold the purposes of the UN Charter, be committed to extensive consultation and joint contribution for shared benefit and adhere to a people-centered approach, according to the agreement, per Xinhua.
Global spotlight on WAIC
Since its inception in 2018, the WAIC has successfully convened for eight consecutive editions, becoming an important window for showcasing cutting-edge AI technologies from China and around the world while deepening international opening-up and cooperation.
Themed “AI Partnership for a Brighter Future”, the exhibition area exceeds 100,000 square meters for the first time this year, attracting the participation of over 1,100 enterprises. The exhibitors are showcasing more than 3,000 products and technologies, with over 300 products making their global debuts.
Among the exhibition highlights are Huawei’s latest AI computing super node system Atlas 950, MiniMax M3 multimodal foundation model, and the world’s first agentic AI phone, alongside a range of humanoid robots and AI-powered dexterous hands.
A German BMW representative, who attended WAIC for the first time, expressed enthusiasm about the event, highlighting the humanoid robotics showcased in the exhibition area – technologies he said he has never encountered before.
The representative told the Global Times that his company has adopted Chinese AI-powered large language models such as Qwen and DeepSeek. “The new updated versions of these models emerge weekly, which is very impressive,” the representative said, speaking highly of the cost efficiency of Chinese models.
However, some Western media outlets keep smearing China’s AI advancements and international cooperation. The Economist even claims that China’s open-source AI is a “trap” and that embracing China is “risky.”
Debunking this groundless smearing, Song said that China’s AI development has consistently adhered to the philosophy of a people-centered approach and AI for good, accumulating a wealth of vivid, replicable, and scalable experiences.
At the opening ceremony of the WAIC, the China Meteorological Administration unveiled the MAZU-FengYun Satellite AI Box. The launch marks a new stage in MAZU’s intelligent early-warning initiative, which was unveiled last year, shifting from providing shared meteorological products to delivering AI-enabled forecasting capabilities, according to the administration.
“Over the past year, meteorological and disaster reduction agencies from more than 40 countries have accessed the MAZU early warning technologies and products via cloud platforms. Customized versions of the tool have been deployed in Nigeria, Djibouti, Pakistan, and other nations, earning widespread recognition from users,” You Yang, a staff member with the Shanghai Meteorological Bureau, told the Global Times on Friday.
“From base models to industry-specific applications, China is opening up its low-cost, replicable technological pathways to the world, thereby lowering the threshold for underdeveloped nations to enter the AI era. Meanwhile, China actively helps developing countries address gaps in technology, talent, and governance capabilities to bridge the digital divide in the age of intelligence,” Song said.
According to a March report from Hugging Face, one of the world’s largest AI open-source communities, China has surpassed the US in monthly downloads and overall downloads. In the past year, Chinese models quickly accounted for the plurality or 41 percent of downloads.
“China possesses three unique institutional advantages in promoting AI for good and inclusive development: First, the new system for nationwide mobilization of resources coordinates development and security, achieving synergistic progress in key technological breakthroughs and rule-making. Second, a people-centered approach ensures that technological advancement benefits the people. Third, a multi-stakeholder agile and collaborative governance model links governments, universities, research institutions, enterprises, and social organizations to explore the synergy between rules and technology, providing China’s experience to the world,” Zeng Yi, a member of the UN Advisory Body on AI, told the Global Times on Friday.
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SOURCE Global Times
BOGOTA, Colombia, July 17, 2026 /PRNewswire/ — Ecopetrol S.A. (BVC: ECOPETROL; NYSE: EC) (the “Company”) announced that it has identified an unauthorized access to certain digital resources owned by the Company and its subsidiaries by an external actor who has not been identified, as well as an attempted ransomware attack that was blocked by the cybersecurity controls implemented across the Company and its subsidiaries. The unauthorized access affected cloud-based file storage environments of approximately 15 subsidiaries (including the Company), resulting in the unauthorized download of data associated with approximately 3,300 user accounts. The external actor communicated extortion demands, threatening to publicly disclose the information that had been unlawfully extracted.
In response to this incident, the Company initiated an investigation and activated its incident response and management protocols. In addition, the Company deployed the following measures aimed at preventing the public disclosure of the unlawfully extracted information, addressing supervisory actions and/or potential financial costs associated with investigation, remediation, and regulatory compliance, as follows:
a. Immediate revocation of unauthorized access to the compromised digital assets.
b. Blocking of mechanisms associated with the mass download of information.
c. Identification, analysis, and containment of the tactics, techniques, and procedures (TTPs) used by the malicious actor.
d. Filing of a criminal complaint before the Office of the Attorney General of Colombia and deployment of cooperation activities with specialized national authorities.
e. Identification of external infrastructures used for the storage or download of information to pursue restriction or blocking actions.
f. Activation of support mechanisms with insurers and specialized capital markets teams to ensure the proper management of the event.
g. Detailed assessment of the downloaded information and determination of its criticality.
h. Enhanced monitoring of the technology infrastructure under critical alert protocols and continuous validation of preventive and detective controls.
As of the date of this report, the Company has not identified any material disruption to its critical operations, production capacity, or essential services; any direct financial impact that would prevent it from continuing to conduct its business activities; or any disclosure of the information subject to the unauthorized access. However, the Company continues to assess the potential exposure of corporate information, which could include confidential, restricted, proprietary, or personal data, as it cannot guarantee that this incident will not have a material adverse effect on the Company’s business, reputation, operating results, or financial condition.
Ecopetrol S.A. will continue to monitor developments related to this matter and, should any material facts or information requiring disclosure to the market be identified, will promptly disclose such information in accordance with applicable laws and regulations.
Ecopetrol is the largest company in Colombia and one of the main integrated energy companies in the American continent, with more than 19,000 employees. In Colombia, it is responsible for more than 60% of the hydrocarbon production of most transportation, logistics, and hydrocarbon refining systems, and it holds leading positions in the petrochemicals and gas distribution segments. With the acquisition of 51.4% of ISA’s shares, the company participates in energy transmission, the management of real-time systems (XM), and the Barranquilla – Cartagena coastal highway concession. At the international level, Ecopetrol has a stake in strategic basins in the American continent, with Drilling and Exploration operations in the United States (Permian basin and the Gulf of Mexico), Brazil, and Mexico, and, through ISA and its subsidiaries, Ecopetrol holds leading positions in the power transmission business in Brazil, Chile, Peru, and Bolivia, road concessions in Chile, and the telecommunications sector.
This release contains statements that may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. All forward-looking statements, whether made in this release or in future filings or press releases, or orally, address matters that involve risks and uncertainties, including in respect of the Company’s prospects for growth and its ongoing access to capital to fund the Company’s business plan, among others. Consequently, changes in the following factors, among others, could cause actual results to differ materially from those included in the forward-looking statements: market prices of oil & gas, our exploration, and production activities, market conditions, applicable regulations, the exchange rate, the Company’s competitiveness and the performance of Colombia’s economy and industry, to mention a few. We do not intend and do not assume any obligation to update these forward-looking statements.
For more information, please contact:
Investor Relations Office
Email: investors@ecopetrol.com.co
Head of Corporate Communications (Colombia)
Marcela Ulloa
Email: marcela.ulloa@ecopetrol.com.co
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SOURCE Ecopetrol S.A.
Global Times: Head-of-state diplomacy shines at WAIC, fostering ties and advancing global governance consensus
Global Times: China sends fresh signal on global AI cooperation at WAIC
Ecopetrol Reports Cybersecurity Incident
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