Dell Technologies posts Q2 results

A day before the Dell and EMC transaction closes, Dell Technologies reports solid operating income improvement.
Written by Stephanie Condon, Senior Writer on

A day before finalizing its merger with EMC, Dell Technologies on Tuesday reported its second quarter results for fiscal 2017.

The company reported revenue of $13.1 billion, an increase of 1 percent year over year, with a non-GAAP operating income of $752 million -- up 32 percent from the previous year.

"We executed well in the quarter driving $880 million in adjusted EBITDA, up 31 percent," said Dell CFO Tom Sweet in a statement. "Our second quarter results underscore our ability to consistently balance growth and profitability, and strategically invest in areas that will drive long-term profitable growth and strong cash flow."

Cash flow from operations for the quarter came to $1.9 billion. On a trailing 12-month basis, it was $3.2 billion, an improvement of 50 percent.


In its client solutions segment, Dell saw revenue of $9.2 billion for the quarter, which was flat versus the second quarter of last year. Still, its operating income for the quarter rose 50 percent to $484 million. The company attributed that largely to improved cost and balanced pricing decisions. Dell also said it's seeing growth in its attached software, peripherals, and services business.

The enterprise solutions group brought in $3.8 billion in revenue, the same as the prior year. Operating income increased by 7 percent to $300 million.

Once the EMC acquisition is complete on Wednesday, Dell Technologies will include several different businesses, which could make it challenging for Dell to stay nimble.

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