Dell Technologies has announced financial results for its fiscal 2020 first quarter ended May 3, 2019. First quarter revenue was USD 21.9 billion, up 3 percent, and non-GAAP revenue was USD 22.0 billion, up 2 percent over the same period in the prior year. The company generated operating income of USD 550 million, compared to an operating loss of USD 153 million last year, and non-GAAP operating income of USD 2.2 billion, compared to USD 2.0 billion last year. Net income was USD 329 million or 1.5 percent of revenue, non-GAAP net income was USD 1.2 billion or 5.5 percent of non-GAAP revenue, and adjusted EBITDA was USD 2.6 billion or 11.7 percent of non-GAAP revenue. Cash flow from operations was approximately USD 682 million for the quarter, with diluted earnings per share of USD 0.38 and non-GAAP diluted earnings per share of USD 1.45.
Unveiled at Dell Technologies World earlier in the quarter, the Dell Technologies Cloud combines the power of VMware and Dell Technologies to make hybrid cloud environments simpler to deploy and manage with consistent infrastructure, operations, and services. Dell Technologies Cloud seamlessly extends from the public cloud into the data center with the option of hyper-converged or converged infrastructure, including VMware Cloud Foundation on VxRail, as well as being able to be consumed as a fully managed data center-as-a-service, VMware Cloud on Dell EMC.
Also at Dell Technologies World 2019, the company extended its leadership in edge computing with the announcement of Unified Workspace, which integrates solutions across Dell devices and services, VMware Workspace ONE, and Secureworks to simplify the entire device lifecycle for IT.
Dell Technologies ended the quarter with cash and investments balance of USD 9.8 billion. The company paid down approximately USD 400 million in gross debt in the first quarter and approximately USD 15 billion in gross debt over the two-and-a-half years since the closing of the EMC transaction, excluding Dell Financial Services-related debt, public subsidiary debt, and debt incurred to finance the Class-V transaction. The company is on track to repay approximately USD 4.8 billion of gross debt in fiscal 2020.
“We are in the middle of a technology-led investment cycle that is fueled by the explosion of data. No one is better positioned to deliver the solutions customers need to grow in the data era. One example is our new Dell Technologies Cloud platform, jointly engineered with VMware to expedite customers’ moves to hybrid cloud environments.”