Technology

Dell Technologies Delivers Second Quarter Fiscal 2025 Financial Results

Published

4 months ago

August 29, 2024

News summary

Second quarter revenue of $25.0 billion, up 9% year over yearRecord Infrastructure Solutions Group (ISG) revenue of $11.6 billion, up 38% year over year, with record servers and networking revenue of $7.7 billion, up 80%Client Solutions Group (CSG) revenue of $12.4 billion, down 4% year over year, with commercial client revenue flat at $10.6 billionDiluted earnings per share of $1.17, up 86% year over year, and non-GAAP diluted earnings per share of $1.89, up 9%

ROUND ROCK, Texas, Aug. 29, 2024 /PRNewswire/ —

Full story
Dell Technologies (NYSE: DELL) announces financial results for its fiscal 2025 second quarter. Revenue was $25.0 billion, up 9% year over year. Operating income was $1.3 billion and non-GAAP operating income was $2.0 billion, up 15% and 3% year over year, respectively. Diluted earnings per share was $1.17, and non-GAAP diluted earnings per share was $1.89, up 86% and 9% year over year, respectively.

“In Q2 our combined ISG and CSG revenue was $24.1 billion, up 12% year over year, positioning us well for the second half of the year and beyond,” said Yvonne McGill, chief financial officer, Dell Technologies. “Our momentum in ISG is a significant tailwind, with record ISG revenue of $11.6 billion, up 38% year over year.”

Cash flow from operations was $1.3 billion. Dell returned $1 billion to shareholders through share repurchases and dividends and ended the quarter with $6.0 billion in cash and investments.

Second Quarter Fiscal 2025 Financial Results

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

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

Net revenue

$ 25,026

$ 22,934

9 %

$ 47,270

$ 43,856

8 %

Operating income

$ 1,342

$ 1,165

15 %

$ 2,262

$ 2,234

1 %

Net income

$ 841

$ 455

85 %

$ 1,796

$ 1,033

74 %

Change in cash from operating activities

$ 1,340

$ 3,214

(58) %

$ 2,383

$ 4,991

(52) %

Earnings per share – diluted

$ 1.17

$ 0.63

86 %

$ 2.49

$ 1.42

75 %

Non-GAAP operating income

$ 2,034

$ 1,977

3 %

$ 3,508

$ 3,575

(2) %

Non-GAAP net income

$ 1,371

$ 1,283

7 %

$ 2,294

$ 2,246

2 %

Adjusted free cash flow

$ 1,284

$ 3,050

(58) %

$ 1,907

$ 3,737

(49) %

Non-GAAP earnings per share – diluted

$ 1.89

$ 1.74

9 %

$ 3.16

$ 3.05

4 %

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 record second quarter revenue of $11.6 billion, up 38% year over year. Servers and networking revenue was a record $7.7 billion, up 80%, with demand growth across AI and traditional servers. Storage revenue was $4.0 billion, down 5%. Operating income was $1.3 billion.

“Our AI momentum accelerated in Q2, and we’ve seen an increase in the number of enterprise customers buying AI solutions each quarter,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies. “AI-optimized server demand was $3.2 billion, up 23% sequentially, and $5.8 billion year to date. Backlog was $3.8 billion, and our pipeline has grown to several multiples of our backlog.”

Client Solutions Group (CSG) delivered second quarter revenue of $12.4 billion, down 4% year over year. Commercial client revenue was flat at $10.6 billion, and Consumer revenue was $1.9 billion, down 22%. Operating income was $767 million.

Operating Segments Results

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

(in millions, except percentages; unaudited)

Infrastructure Solutions Group (ISG):

Net revenue:

Servers and networking

$ 7,672

$ 4,274

80 %

$ 13,138

$ 8,111

62 %

Storage

3,974

4,187

(5) %

7,735

7,943

(3) %

Total ISG net revenue

$ 11,646

$ 8,461

38 %

$ 20,873

$ 16,054

30 %

Operating Income:

ISG operating income

$ 1,284

$ 1,049

22 %

$ 2,020

$ 1,789

13 %

% of ISG net revenue

11.0 %

12.4 %

9.7 %

11.1 %

% of total reportable segment operating income

63 %

52 %

57 %

49 %

Client Solutions Group (CSG):

Net revenue:

Commercial

$ 10,556

$ 10,554

— %

$ 20,710

$ 20,416

1 %

Consumer

1,858

2,388

(22) %

3,671

4,509

(19) %

Total CSG net revenue

$ 12,414

$ 12,942

(4) %

$ 24,381

$ 24,925

(2) %

Operating Income:

CSG operating income

$ 767

$ 969

(21) %

$ 1,499

$ 1,861

(19) %

% of CSG net revenue

6.2 %

7.5 %

6.1 %

7.5 %

% of total reportable segment operating income

37 %

48 %

43 %

51 %

Conference call information
As previously announced, the company will hold a conference call to discuss its performance and financial guidance on August 29 at 3:30 p.m. CDT. Prior to the start of the conference call, prepared remarks and a presentation containing additional financial and operating information prior to 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.

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 AI 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, all of 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; social and ethical issues relating to the use of new and evolving technologies; 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 2, 2024, 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.

Condensed Consolidated Statements of Income and Related Financial Highlights

(in millions, except percentages; unaudited)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Net revenue:

Products

$ 18,954

$ 16,935

12 %

$ 35,081

$ 31,971

10 %

Services

6,072

5,999

1 %

12,189

11,885

3 %

Total net revenue

25,026

22,934

9 %

47,270

43,856

8 %

Cost of net revenue:

Products

16,079

14,002

15 %

29,845

26,377

13 %

Services

3,636

3,545

3 %

7,308

7,074

3 %

Total cost of net revenue

19,715

17,547

12 %

37,153

33,451

11 %

Gross margin

5,311

5,387

(1) %

10,117

10,405

(3) %

Operating expenses:

Selling, general, and administrative

3,189

3,517

(9) %

6,312

6,778

(7) %

Research and development

780

705

11 %

1,543

1,393

11 %

Total operating expenses

3,969

4,222

(6) %

7,855

8,171

(4) %

Operating income

1,342

1,165

15 %

2,262

2,234

1 %

Interest and other, net

(353)

(451)

22 %

(726)

(815)

11 %

Income before income taxes

989

714

39 %

1,536

1,419

8 %

Income tax expense (benefit)

148

259

(43) %

(260)

386

(167) %

Net income

841

455

85 %

1,796

1,033

74 %

Less: Net loss attributable to non-controlling
interests

(5)

(7)

29 %

(10)

(12)

17 %

Net income attributable to Dell Technologies Inc.

$ 846

$ 462

83 %

$ 1,806

$ 1,045

73 %

Percentage of Total Net Revenue:

Gross margin

21.2 %

23.5 %

21.4 %

23.7 %

Selling, general, and administrative

12.7 %

15.3 %

13.3 %

15.4 %

Research and development

3.1 %

3.3 %

3.2 %

Operating expenses

15.8 %

18.4 %

16.6 %

18.6 %

Operating income

5.4 %

5.1 %

4.8 %

5.1 %

Income before income taxes

4.0 %

3.1 %

3.2 %

Net income

3.4 %

2.0 %

3.8 %

2.4 %

Income tax rate

15.0 %

36.3 %

(16.9) %

27.2 %

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

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Financial Position

(in millions; unaudited)

August 2, 2024

February 2, 2024

ASSETS

Current assets:

Cash and cash equivalents

$ 4,550

$ 7,366

Accounts receivable, net of allowance of $78 and $71

11,391

9,343

Short-term financing receivables, net of allowance of $79 and $79

4,968

4,643

Inventories

5,953

3,622

Other current assets

10,681

10,973

Total current assets

37,543

35,947

Property, plant, and equipment, net

6,300

6,432

Long-term investments

1,302

1,316

Long-term financing receivables, net of allowance of $87 and $91

6,124

5,877

Goodwill

19,654

19,700

Intangible assets, net

5,374

5,701

Other non-current assets

6,390

7,116

Total assets

$ 82,687

$ 82,089

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Short-term debt

$ 6,711

$ 6,982

Accounts payable

24,095

19,389

Accrued and other

6,374

6,805

Short-term deferred revenue

14,853

15,318

Total current liabilities

52,033

48,494

Long-term debt

17,811

19,012

Long-term deferred revenue

12,859

13,827

Other non-current liabilities

2,781

3,065

Total liabilities

85,484

84,398

Stockholders’ equity (deficit):

Total Dell Technologies Inc. stockholders’ equity (deficit)

(2,894)

(2,404)

Non-controlling interests

Total stockholders’ equity (deficit)

(2,797)

(2,309)

Total liabilities and stockholders’ equity

$ 82,687

$ 82,089

DELL TECHNOLOGIES INC.

Condensed Consolidated Statements of Cash Flows

(in millions; unaudited)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

August 2,
2024

August 4,
2023

Cash flows from operating activities:

Net income

$ 841

$ 455

$ 1,796

$ 1,033

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

499

2,759

587

3,958

Change in cash from operating activities

1,340

3,214

2,383

4,991

Cash flows from investing activities:

Purchases of investments

(25)

(98)

(64)

(113)

Maturities and sales of investments

108

216

127

Capital expenditures and capitalized software
development costs

(682)

(624)

(1,278)

(1,325)

Other

113

Change in cash from investing activities

(557)

(605)

(1,013)

(1,289)

Cash flows from financing activities:

Proceeds from the issuance of common stock

Repurchases of common stock

(725)

(260)

(1,425)

(500)

Repurchases of common stock for employee tax
withholdings

(14)

(6)

(535)

(312)

Payments of dividends and dividend equivalents

(316)

(269)

(652)

(545)

Proceeds from debt

1,941

2,134

4,933

4,655

Repayments of debt

(2,917)

(3,384)

(6,394)

(7,082)

Debt-related costs and other, net

(2)

(44)

(37)

(49)

Change in cash from financing activities

(2,032)

(1,827)

(4,109)

(3,829)

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

(42)

(59)

(97)

(117)

Change in cash, cash equivalents, and restricted cash

(1,291)

723

(2,836)

(244)

Cash, cash equivalents, and restricted cash at beginning of
the period

5,962

7,927

7,507

8,894

Cash, cash equivalents, and restricted cash at end of the
period

$ 4,671

$ 8,650

$ 4,671

$ 8,650

DELL TECHNOLOGIES INC.

Segment Information

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

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Infrastructure Solutions Group (ISG):

Net revenue:

Servers and networking

$ 7,672

$ 4,274

80 %

$ 13,138

$ 8,111

62 %

Storage

3,974

4,187

(5) %

7,735

7,943

(3) %

Total ISG net revenue

$ 11,646

$ 8,461

38 %

$ 20,873

$ 16,054

30 %

Operating Income:

ISG operating income

$ 1,284

$ 1,049

22 %

$ 2,020

$ 1,789

13 %

% of ISG net revenue

11.0 %

12.4 %

9.7 %

11.1 %

% of total reportable segment operating income

63 %

52 %

57 %

49 %

Client Solutions Group (CSG):

Net revenue:

Commercial

$ 10,556

$ 10,554

— %

$ 20,710

$ 20,416

1 %

Consumer

1,858

2,388

(22) %

3,671

4,509

(19) %

Total CSG net revenue

$ 12,414

$ 12,942

(4) %

$ 24,381

$ 24,925

(2) %

Operating Income:

CSG operating income

$ 767

$ 969

(21) %

$ 1,499

$ 1,861

(19) %

% of CSG net revenue

6.2 %

7.5 %

6.1 %

7.5 %

% of total reportable segment operating income

37 %

48 %

43 %

51 %

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

August 2, 2024

August 4, 2023

August 2, 2024

August 4, 2023

Reconciliation to consolidated net revenue:

Reportable segment net revenue

$ 24,060

$ 21,403

$ 45,254

$ 40,979

Other businesses (a)

966

1,528

2,015

2,871

Unallocated transactions (b)

—

Total consolidated net revenue

$ 25,026

$ 22,934

$ 47,270

$ 43,856

Reconciliation to consolidated operating income:

Reportable segment operating income

$ 2,051

$ 2,018

$ 3,519

$ 3,650

Other businesses (a)

(17)

(44)

(11)

(80)

Unallocated transactions (b)

—

Amortization of intangibles (c)

(168)

(213)

(336)

(416)

Stock-based compensation expense (d)

(191)

(223)

(401)

(448)

Other corporate expenses (e)

(333)

(376)

(509)

(477)

Total consolidated operating income

$ 1,342

$ 1,165

$ 2,262

$ 2,234

_________________

(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)

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

(d)

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

(e)

Other corporate expenses consist primarily of severance expenses, payroll taxes associated with stock-based compensation, facility action costs, transaction-related expenses, impairment charges, and incentive charges related to equity investments. Other corporate expenses included $328 million and $364 million of severance expense during the three months ended August 2, 2024 and August 4, 2023, respectively.

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, all of 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

Six Months Ended

August 2, 2024

August 4, 2023

Change

August 2, 2024

August 4, 2023

Change

Net revenue

$ 25,026

$ 22,934

9 %

$ 47,270

$ 43,856

8 %

Non-GAAP gross margin

$ 5,464

$ 5,536

(1) %

$ 10,411

$ 10,700

(3) %

% of net revenue

21.8 %

24.1 %

22.0 %

24.4 %

Non-GAAP operating expenses

$ 3,430

$ 3,559

(4) %

$ 6,903

$ 7,125

(3) %

% of net revenue

13.7 %

15.5 %

14.6 %

16.2 %

Non-GAAP operating income

$ 2,034

$ 1,977

3 %

$ 3,508

$ 3,575

(2) %

% of net revenue

8.1 %

8.6 %

7.4 %

8.2 %

Non-GAAP net income

$ 1,371

$ 1,283

7 %

$ 2,294

$ 2,246

2 %

% of net revenue

5.5 %

5.6 %

4.9 %

5.1 %

Non-GAAP earnings per share – diluted

$ 1.89

$ 1.74

9 %

$ 3.16

$ 3.05

4 %

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

August 2, 2024

August 4, 2023

Change

August 2, 2024

August 4, 2023

Change

Gross margin

$ 5,311

$ 5,387

(1) %

$ 10,117

$ 10,405

(3) %

Non-GAAP adjustments:

Amortization of intangibles

119

163

Stock-based compensation expense

Other corporate expenses

Non-GAAP gross margin

$ 5,464

$ 5,536

(1) %

$ 10,411

$ 10,700

(3) %

Operating expenses

$ 3,969

$ 4,222

(6) %

$ 7,855

$ 8,171

(4) %

Non-GAAP adjustments:

Amortization of intangibles

(109)

(129)

(217)

(253)

Stock-based compensation expense

(153)

(186)

(325)

(373)

Other corporate expenses

(277)

(348)

(410)

(420)

Non-GAAP operating expenses

$ 3,430

$ 3,559

(4) %

$ 6,903

$ 7,125

(3) %

Operating income

$ 1,342

$ 1,165

15 %

$ 2,262

$ 2,234

1 %

Non-GAAP adjustments:

Amortization of intangibles

168

213

336

416

Stock-based compensation expense

191

223

401

448

Other corporate expenses

333

376

509

477

Non-GAAP operating income

$ 2,034

$ 1,977

3 %

$ 3,508

$ 3,575

(2) %

Net income

$ 841

$ 455

85 %

$ 1,796

$ 1,033

74 %

Non-GAAP adjustments:

Amortization of intangibles

168

213

336

416

Stock-based compensation expense

191

223

401

448

Other corporate expenses

329

432

499

530

Fair value adjustments on equity
investments

(5)

Aggregate adjustment for income
taxes (a)

(153)

(69)

(763)

(225)

Non-GAAP net income

$ 1,371

$ 1,283

7 %

$ 2,294

$ 2,246

2 %

____________________

(a) Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(unaudited; continued)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Earnings per share attributable to Dell Technologies Inc. —
diluted

$ 1.17

$ 0.63

86 %

$ 2.49

$ 1.42

75 %

Non-GAAP adjustments:

Amortization of intangibles

0.23

0.29

0.46

0.56

Stock-based compensation expense

0.26

0.30

0.55

0.61

Other corporate expenses

0.46

0.58

0.69

0.72

Fair value adjustments on equity investments

(0.01)

0.04

0.06

Aggregate adjustment for income taxes (a)

(0.21)

(0.09)

(1.05)

(0.31)

Total non-GAAP adjustments attributable to non-
controlling interests

(0.01)

(0.02)

(0.01)

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

$ 1.89

$ 1.74

9 %

$ 3.16

$ 3.05

4 %

____________________

(a) Beginning in Fiscal 2025, our non-GAAP income tax is calculated using a fixed estimated annual tax rate.

DELL TECHNOLOGIES INC.

Reconciliation of Selected Non-GAAP Financial Measures

(in millions, except percentages; unaudited; continued)

Three Months Ended

Six Months Ended

August 2,
2024

August 4,
2023

Change

August 2,
2024

August 4,
2023

Change

Cash flow from operations

$ 1,340

$ 3,214

(58) %

$ 2,383

$ 4,991

(52) %

Non-GAAP adjustments:

Capital expenditures and capitalized software
development costs, net (a)

(636)

(624)

(1,222)

(1,322)

Free cash flow

$ 704

$ 2,590

(73) %

$ 1,161

$ 3,669

(68) %

Free cash flow

$ 704

$ 2,590

(73) %

$ 1,161

$ 3,669

(68) %

Non-GAAP adjustments:

Financing receivables (b)

487

497

652

130

Equipment under operating leases (c)

(37)

(62)

Adjusted free cash flow

$ 1,284

$ 3,050

(58) %

$ 1,907

$ 3,737

(49) %

____________________

(a)

Capital expenditures and capitalized software development costs is net of proceeds from sales of facilities, land, and other assets.

(b)

Financing receivables represent the operating cash flow impact from the change in DFS financing receivables.

(c)

Equipment under operating leases represents the net change of capital expenditures and depreciation expense for DFS leases and contractually embedded leases identified within flexible consumption arrangements.

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SOURCE Dell Technologies

Technology

2025 Chinese economy: robust capacity in coping with pressure and risks

Published

1 hour ago

December 23, 2024

BEIJING, Dec. 22, 2024 /PRNewswire/ — A news report from China.org.cn on China’s annual Central Economic Work Conference:

From China’s annual Central Economic Work Conference held last week, one can see clear targets and detect the continuity in the rationale behind the country’s economic roadmap for 2025. The tasks listed at the conference are in line with China’s development needs in the current phase, and can to a degree respond to the external risks.

Firstly, the meeting urged efforts to vigorously boost consumption, a top-of-agenda task. Expanding domestic demand is not only a long-term priority for China, but also a coping strategy for the tougher challenges faced in exports. China’s efforts to stimulate consumption mainly fall into two categories. For one, enabling its citizens to have more to spend, by means of increasing income and alleviating burdens of low- and middle-income groups, and enabling more to enter the middle-income bracket; meanwhile, China will continue to diversify consumption scenarios, such as the debut economy, ice and snow economy and silver economy, for consumers to spend their disposable income.

Secondly, China is determined to let scientific and technological innovation drive the building of a modern industrial system, serving as a compass for China’s industrial economy development. In 2025, China is going to invest more in technological innovation, and strengthen studies in basic sciences and key core technologies, to drive industrial innovation, and furthermore achieve high standards in sci-tech self-reliance and strength.

Thirdly, China will maintain its high-level opening-up, and keep foreign trade and foreign investment stable. The size, quality and good reputation of China’s business with the world have been ever-growing, and that’s because the goal of China is to “make the cake bigger,” not “steal others’ shares of cake,” let alone “seize the whole cake.” To that end, China has improved the quality of its exports, explored new investment models, and made more countries stakeholders along the global value chain; meanwhile, it has also been ameliorating its market-access policies, and bettering the treatment of foreign-invested companies, so that more countries can benefit from the Chinese market. By November, China has removed all market access restrictions for foreign investors in the manufacturing sector, and service sectors including telecommunication and medical care are also opening their doors wider at a stable pace.

China shows great willingness to open up to the world, and boasts a good many partners; at the same time, the country’s economy has a solid foundation with many advantages, strong resilience and great potential, which means it possesses robust capacity in coping with pressure and risks.

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SOURCE China.org.cn

Technology

India-born Avaada Group Commits $12bn to Transform Rajasthan into a Global Renewable Energy Hub

Published

1 hour ago

December 23, 2024

MUMBAI, India, Dec. 23, 2024 /PRNewswire/ — Avaada Group, a leading name in the renewable energy sector, has announced an unprecedented investment of $12bn in Rajasthan, India, for accelerating green energy transition, thereby establishing the region as a global renewable energy powerhouse. This landmark announcement was made during the prestigious Rising Rajasthan 2024 Summit, attended by India’s Hon’ble Prime Minister Narendra Modi and Rajasthan’s Hon’ble Chief Minister Bhajanlal Sharma.

Highlighting Rajasthan’s strategic importance, Avaada Group’s Chairman Vineet Mittal, Guest of Honour at the event, stated, “Rajasthan’s vast solar and wind resources, coupled with the visionary leadership of the Hon’ble Prime Minister and Chief Minister, present an unparalleled opportunity to redefine the global renewable energy landscape. Avaada’s commitment of $12bn while driving green industrial manufacturing will also create millions of jobs, shaping a sustainable and inclusive future.”

Rajasthan stands out as a global hub for renewable energy, with over 142 GW of unmatched solar potential, supported by 325+ sunny days annually. The state’s pro-business policies, including the Rajasthan Investment Promotion Scheme 2024 and the Integrated Clean Energy Policy 2024, have attracted investments worth $78bn.

Avaada Group’s journey in Rajasthan began with a modest 150 MW solar project and has since evolved into multiple ventures, including one of the world’s largest single location renewable energy projects by an IPP. Key investments announced at the summit include:

1,200 MW Pumped Storage Project (PSP): A $700mn initiative to enhance energy storage and grid stability.Green Hydrogen and Ammonia Projects: Investments aimed at driving global decarbonization goals.Utility-Scale Solar and Wind Projects: Across Jhalawar, Kota, Barmer, and Bikaner, contributing significantly to India’s renewable energy targets.

With its strategic alignment to international sustainability frameworks like the EU’s Carbon Border Adjustment Mechanism (CBAM), Rajasthan offers a unique advantage for zero-carbon manufacturing and green industrial growth, positioning itself as a magnet for industries seeking sustainable operations while creating over 1mn green jobs.

“As a global renewable energy leader, Avaada is proud to participate in Rajasthan’s vision of becoming a green hub of industrial growth,” Mr. Mittal remarked. “Our investments aim to double the region’s economy by 2030, aligned with global efforts to combat climate change.”

With its strategic initiatives, Avaada Group is poised to attract international collaborations, setting a benchmark for renewable energy innovation and sustainable industrial development.

About Avaada Group

Avaada Group is a leader in the global energy transition, specializing in solar module manufacturing, renewable power generation, and the development of green hydrogen, green methanol, green ammonia, and sustainable aviation fuel projects. Under the visionary leadership of Mr. Vineet Mittal, Avaada has become a significant global player in clean energy. Avaada Energy, the group’s renewable power generation arm, aims to achieve a capacity of 11 GWp by 2026. The group’s strong execution capabilities have attracted substantial international investment, including a $1.3bn commitment in early 2023, with $1bn from Brookfield’s Energy Transition Fund and $300mn from GPSC, a subsidiary of Thailand’s PTT Group.

Contact

Kiren Srivastav
kiren.srivastav@avaada.com

Charu Sehgal
charu.sehgal@avaada.com

View original content:https://www.prnewswire.co.uk/news-releases/india-born-avaada-group-commits-12bn-to-transform-rajasthan-into-a-global-renewable-energy-hub-302337340.html

Technology

The Shining Achievements of Busan MICE in 2024

Published

1 hour ago

December 23, 2024

BUSAN, South Korea, Dec. 23, 2024 /PRNewswire/ — Amid intensifying competition among MICE host cities to attract large events, 2024 saw Busan take bold steps that led to impressive results, proving its potential as a prime MICE destination. The efforts made by Busan in 2024 in attracting major international conferences, promoting ESG management, enhancing networking, and strengthening city identity are outlined below.

International Conferences Held in the Global MICE City of Busan

Busan hosted several significant international conferences in 2024. In July, it welcomed the 45th Scientific Assembly of the Committee on Space Research (COSPAR 2024), drawing around 2,700 space scientists from 60 countries to Korea. This was the first time the event was held in the country. In August, after eight years of preparation, the city hosted the 37th International Geological Congress (IGC 2024), a prestigious event with a 146-year history, at BEXCO. In November, Busan hosted the 5th Session of the UN Intergovernmental Negotiating Committee on Plastic Pollution (INC-5). With participation from 193 institutions and countries, INC-5 was the final dialogue in a series of international discussions on controlling plastic pollution, making it a crucial conference on the future health of Earth’s marine environment and placing Busan at the forefront of global attention.

Wide-ranging ESG Activities for the Sustainability of MICE

Busan’s selection to host INC-5 was made possible by its strong track record of ESG initiatives within the MICE industry. The Busan Tourism Organization (BTO) CVB’s exhibition hall was decorated using recyclable wood, and with the assistance of eco-friendly suppliers, recycling stations were set up to facilitate the collection of waste generated during the event. Aiming for a paperless conference, digital materials and multifunctional electronic platforms were also used. Continuous efforts in various ESG initiatives were made through collaborations with Busan MICE Alliance (BMA) members. Environmental reports were made, containing carbon reduction amounts for all products used at event venues and greenhouse gas reduction indicators for transportation during each event, to create more eco-friendly events.

Improvement of Busan’s MICE Network Through Communication

The Busan MICE Alliance and the Busan MICE industry, in general, grew in solidarity through strong networking this year. The BTO CVB worked to fundamentally enhance Busan’s MICE industry by increasing local demand for MICE events and maintaining an efficient collaboration network. Regular meetings of the BMA focused on the concerns of its members to improve communication. Additionally, Busan MICE Alliance Day was held to strengthen ties among members of Busan’s MICE industry, fostering discussions on industry developments both locally and internationally, and exploring joint marketing opportunities. New members were recruited into the BMA in both the first and second halves of the year, enhancing collaboration between the public and private sectors for the success of Busan’s MICE industry. The Busan MICE Business Innovation Platform, which provides users with access to news and information about Busan’s MICE industry, was launched and well-received.

Unique Venues That Capture Busan’s Local Identity

Participants in MICE events now expect more than just the exchange of knowledge. They seek a special experience, and MICE destinations should leverage their local identity to provide experiences that can only be found in their cities or regions. Recognizing this industry trend, Busan has identified a variety of unique venues that highlight the history, culture, and distinctiveness of the city. Venues such as Domoheon, the former residence of Busan’s mayor; Space OneZ, a renovated old warehouse; and Holi Lounge, offering a surfing workation, exemplify this approach. The MICE events held at these unique venues are also organized in a way that showcases the best of Busan’s local identity.

As another busy year draws to a close, Busan, as a MICE city, is looking forward to making even greater strides next year. The 18th World Congress on Computational Mechanics (WCCM) in 2028, along with many other international MICE events, are set to take place in Busan, and the BTO CVB is actively working toward this goal.

With aspirations of reaching the pinnacle of the MICE industry, Busan will continue its efforts to be a sustainable, cooperative, and unique MICE city that is globally recognized.

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SOURCE Busan Tourism Organization