Operating income was $1.1 billion, down 7% and approximately 7.7% of Client Solutions Group revenue. Commercial revenue was $10.7 billion, down 13%, and Consumer revenue was $3 billion, down 29%. Operating income was a record $1.4 billion, up 54% and approximately 14.3% of Infrastructure Solutions Group revenue.Ĭlient Solutions Group delivered third quarter revenue of $13.8 billion, down 17% year-over-year. Storage revenue was $4.4 billion, up 11%. Servers and networking revenue was $5.2 billion, up 14%. ![]() Infrastructure Solutions Group delivered record third quarter revenue of $9.6 billion, up 12% year-over-year and its seventh consecutive quarter of year-over-year growth. ![]() All comparisons in this press release are year-over-year unless otherwise noted. Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below. Silver Lake, which partnered with Michael Dell in 2013 to execute the largest privatization in the history of the technology industry, currently owns 24% of Dell Technologies’ common shares and as part of this transaction will maintain the entirety of its investment in the company.Īgain, you can find the official press release here.(in millions, except per share amounts and percentages unaudited)ĭuring the three and nine months ended October 28, 2022, net income from continuing operations and earnings per share-diluted include a $1.0 billion expense recognized within interest and other, net, in connection with a previously reported litigation settlement agreement. Dell Technologies has maintained a disciplined pace of deleveraging, having paid down $13 billion of gross debt since its merger with EMC in September 2016. Over the trailing twelve-month period Dell Technologies generated $82.4 billion of revenue with a net loss of $2.3 billion and cash flow from operations of $7.7 billion. Over the same period, Dell generated $83.5 billion of non-GAAP revenue, $4.8 billion of non-GAAP net income and $9.7 billion of adjusted EBITDA. In the most recent quarter, the company generated revenue of $21.4 billion, a 19% increase year-over-year, net loss decreased 55% to $0.5 billion and the company generated $2.4 billion of adjusted EBITDA, a 33% increase year-over-year. VMware maintains its independence as a separate publicly traded company while Dell Technologies will continue to own 81% of VMware common stockĭell Technologies is experiencing strong positive momentum across its businesses after a period of strong revenue growth, earnings, cash flow and accelerated debt pay-down.Transaction simplifies capital structure and positions Dell Technologies to build on its growing strategic and financial strength.The Special Committee of Dell Independent Directors recommends the transaction following extensive independent review the transaction is subject to stockholder approval by holders of the Class V shares.Pro forma for the transaction, DVMT stockholders will own 20.8%-31.0% of Dell Technologies, depending on cash election amounts Dell Technologies’ share of such dividend will be approximately $9 billion. VMware’s board of directors, on the recommendation of a special committee of its directors, has voted to declare an $11 billion cash dividend pro rata to all VMware stockholders contingent on satisfaction of the other conditions to the completion of the transaction.$109 in value per share implies a total market capitalization of $21.7 billion for the Class V stockholders.The Class V stockholders will have the option to elect $109 in cash consideration per Class V share, up to $9 billion in aggregate, which represents a 29% premium to the Class V closing share price immediately prior to announcement.Dell Technologies to offer a new class of publicly listed common stock following completion of proposed exchange of Dell Technologies Class V tracking stock for Dell Technologies Class C common stock. ![]() We wanted to extract a few key items from the press release for our readers: You can find the official press release here. Dell Technologies will still own 81% of VMware common stock after the transaction yet VMware will continue to be a separate publicly traded company. Michael Dell owns 72% of the company while a private equity firm Silver Lake owns 24%. Going public also increases Dell Technologies’ ability to pay down debt from the go-private transaction by accessing the capital markets. For the company, going public again also means that it will face greater disclosure requirements handing the tech industry greater insight into what is going on at the enormous technology provider. The actual exchange of shares is big news for investors. In the industry, this is big news for a few reasons. The transaction will involve exchanging class V tracking stock for VMware with Class C common stock or cash. ![]() Dell Technologies announced that it is going public again about five years after going private.
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