Dell Technologies Inc (NYSE:DVMT) Announces The Q1 Financial Results For Its Financial Year 2019

The company revealed that its revenue for the first quarter came in at $21.4 billion thus marking a 19 percent rise, with the non-GAAP revenue hitting $21.5 billion. This was a 17 percent rise compared to the figure reported in the previous quarter. Dell Technologies also reported a $153 million operating loss while its non-GAAP operating income for the quarter was $2.0 billion, a 42 percent rise compared to the previous quarter.

“We had a strong first quarter with balanced growth across all business units, regions, and customer segments. Our broad set of capabilities, enhanced by our targeted investments over the last year, drove strong top-line momentum and improved profitability, allowing us to generate good operating cash flow and make progress paying down our core debt,” stated Dell Technologies CFO, Tom Sweet.

The cash and debt situation

Dell had a cash and investments balance of $21.7 billion by the end of Q1 2019 which was a $1.4 billion compared to the previous quarter and a $6.7 billion boost compared to Q1 2018. The company also demonstrated strong cash generation which is impressive considering that it has been kicking things into high gear.

The company managed to slash $600 million from its core debt within the first quarter, thus bringing down core debt balance to $39.8 billion. The firm also settled $2.5 billion of the core debt towards the end of Q1, thus further lowering its debt figure especially after the EMC transaction was finalized.

Dell Technologies Vice Chairman Jeff Clarke stated that the company has worked hard and succeeded towards maintaining the momentum that it demonstrated towards the end of 2017. The momentum has particularly been evident in the commercial and server clients and has gone on throughout the first quarter of YY19. Clarke also revealed that the company gained more customers in the servers and PC markets and it also expects positive performance from the company’s storage business.

Strategic focus and building towards strong performance in the future

Clarke also added that despite being pleased with its Q1 performance, Dell is still not satisfied and will continue working towards investing its resources and energy towards the things that matter to its clients. The company’s performance in Q1 marks an overall forward step in the right direction but one that needs to be maintained especially with the ever-competitive market. Dell executives are confident in the company’s ability to deliver better performance in the future and that is what the company is currently working towards.

The Q1 financial results are also important for the firm because they set the tone for the next three financial quarters. The results will also help investors determine whether to invest in Dell or not.

The announcement of Dell’s financial results for Q1, FY19 resulted in a slight uptick in the company’s shares on Monday morning although the shares had a slight decline by noon of the same day.