Dell technologies today announced its first quarter results for fiscal year 2023. The report shows that Dell's total net revenue in the first quarter was US $26.116 billion, an increase of 16% compared with us $22.59 billion in the same period last year; The net profit from continuing operations was US $1069 million, compared with us $659 million in the same period of last year, an increase of 62% year-on-year;
The net profit attributable to Dell was US $1072 million, compared with us $887 million in the same period last year, a year-on-year increase of 21%; The adjusted net profit not in accordance with us gaap was US $1434 million, an increase of 36% compared with us $1055 million in the same period last year.
Dell technology's adjusted revenue and earnings per share in the first quarter exceeded Wall Street analysts' expectations, pushing its after hours share price up more than 5%.
Summary of first quarter results:
In the fiscal quarter ending April 29, 2023, Dell technology's net profit from continuing operations was $1069 million, compared with $659 million in the same period of last year, an increase of 62% year-on-year; Diluted earnings per share from continuing operations was $1.37, compared with $0.84 a year earlier. Dell technology's net profit from continuing operations accounted for 4.1% of total net revenue in the first quarter, compared with 2.9% in the same period last year.
In the first quarter, the net profit attributable to Dell was $1072 million, compared with $887 million in the same period last year, a year-on-year increase of 21%.
Not in accordance with the U.S. general accounting standards (excluding amortization expenses of intangible assets, tax impact, equity incentive expenses and other one-time items), Dell technology's adjusted net profit in the first fiscal quarter was $1434 million, an increase of 36% compared with $1055 million in the same period of the previous year; Adjusted earnings per share was $1.84, up 36% from $1.35 in the same period last year, which exceeded analysts' expectations. According to the data provided by Yahoo Finance Channel, 14 analysts had expected Dell technology's adjusted earnings per share to reach $1.39 in the first quarter. Not in accordance with U.S. GAAP, Dell technology's adjusted net profit margin in the first quarter was 5.5%, compared with 4.7% in the same period last year.
Dell's total net revenue in the first quarter was $26.116 billion, up 16% from $22.59 billion in the same period last year. Not in accordance with U.S. GAAP, Dell technology's adjusted net revenue in the first quarter was also $26.116 billion, an increase of 16% compared with $22.598 billion in the same period last year, exceeding analysts' expectations. According to the data provided by Yahoo Finance Channel, 11 analysts had expected Dell technology's first quarter revenue to reach $25.04 billion on average.
Dell technology's operating profit in the first quarter was $1.55 billion, up 57% from $987 million in the same period last year; The operating profit margin was 5.9%, compared with 4.4% in the same period last year. Not in accordance with U.S. GAAP, Dell technology's adjusted operating profit in the first quarter was $2135 million, an increase of 21% compared with $1.77 billion in the same period last year; The adjusted operating profit margin was 8.2%, compared with 7.8% in the same period last year.
According to the overall business category, the product revenue of Dell technology in the first fiscal quarter was US $20.464 billion, an increase of 17% compared with us $17.487 billion in the same period of last year; Service revenue was US $5.652 billion, an increase of 11% compared with us $5.103 billion in the same period last year.
By specific business department:
-Dell technology's revenue from the infrastructure solutions group in the first quarter was $9.285 billion, up 16% from $8.033 billion in the same period last year. Among them, the revenue of server and networking business was US $5.048 billion, an increase of 22% compared with us $4.140 billion in the same period of last year; The revenue of storage business was US $4.237 billion, an increase of 9% compared with us $3.893 billion in the same period last year. The operating profit of infrastructure solutions group in the first quarter was US $1082 million, a year-on-year increase of 39%, accounting for 11.7% of the group's revenue, compared with us $778 million in the same period last year, accounting for 9.7% of the group's revenue.
-Dell technology's revenue from customer solutions group in the first quarter was $15.587 billion, up 17% from $13.311 billion in the same period last year. Among them, the revenue of the commercial sector was US $11.971 billion, an increase of 22% compared with us $9.808 billion in the same period last year; The revenue of the consumer sector was US $3.616 billion, an increase of 3% compared with us $3.503 billion in the same period last year. The operating profit of customer solutions group in the first quarter was $1.115 billion, an increase of 3% year-on-year, accounting for 7.2% of the group's revenue, compared with $1.080 billion in the same period last year, accounting for 8.1% of the group's revenue.
Dell technology's total revenue cost in the first quarter was $20.332 billion, up 17% from $17.326 billion in the same period last year. Among them, the product revenue cost was US $17.009 billion, an increase of 18% compared with us $14.434 billion in the same period of last year; The service revenue cost was US $3.323 billion, an increase of 15% compared with us $2.892 billion in the same period last year.
Dell technology's gross profit in the first quarter was US $5.784 billion, an increase of 10% compared with us $5.264 billion in the same period last year; The gross profit margin was 22.1%, compared with 23.3% in the same period last year. Not in accordance with U.S. GAAP, Dell technology's adjusted gross profit in the first quarter was $5.941 billion, an increase of 9% compared with $5.464 billion in the same period last year; The adjusted gross profit margin was 22.7%, compared with 24.2% in the same period last year.
Dell technology's total operating expenditure in the first quarter was $4.234 billion, a year-on-year decrease of 1%, accounting for 16.2% of total net revenue, compared with $4.277 billion in the same period last year, accounting for 18.9% of total net revenue. Among them, sales, general affairs and administrative expenses were US $3.553 billion, a year-on-year decrease of 3%, accounting for 13.6% of the total net revenue, compared with us $3.658 billion in the same period of last year, accounting for 16.2% of the total net revenue; R & D expenditure was $681 million, a year-on-year increase of 10%, accounting for 2.6% of total net revenue, compared with $619 million in the same period last year, accounting for 2.7% of total net revenue.
Dell technology's cash flow from business operations in the first quarter was $269 million, compared with $2.238 billion in the same period last year. As of the end of the first fiscal quarter of fiscal year 2023, the cash and investment balance held by Dell technology was US $8.5 billion; Total deferred revenue was $27.4 billion; The remaining performance obligations were US $42 billion, a year-on-year increase of 14%. Dell technology's recurring revenue in the first quarter was about $5.3 billion, a year-on-year increase of 15%.
Changes in share price:
On the same day, Dell technology shares rose $0.63, or 1.45%, to $43.93 in regular trading on the New York Stock Exchange. In the subsequent after hours trading as of 5:18 p.m. Eastern time on the 26th (5:18 a.m. Beijing time on the 27th), Dell technology's share price rose again by $2.33, or 5.30%, to $46.26. In the past 52 weeks, the highest price of Dell technology was $61.54 and the lowest price was $38.33. (Tang Feng)