Dell Technologies (NYSE: DELL) announces record financial results for its fiscal 2022 first quarter. Revenue was up 12% to$24.5 billion. Thecompany generated operating income of$1.4 billion, a 96% increase over the same period in the prior year, and non-GAAP operating income of$2.7 billion, up 26%. Net income was$938 million, non-GAAP net income was$1.8 billion and adjusted EBITDA was$3.2 billion. Net cash from operating activities was$2.2 billion. Diluted earnings per share was$1.13, up 495% and non-GAAP diluted earnings per share was$2.13, up 59%.

"There has been a substantial acceleration in digital transformation across the globe and you can see it in our results with record first quarter revenue of$24.5 billion. Now more than ever, customers are turning to Dell Technologies to help build their digital future," said Jeff Clarke, chief operating officer and vice chairman, Dell Technologies. "Looking ahead, we see technology becoming increasingly central to the global economy and society. We're excited for the opportunities ahead and for the data-fueled future we're creating."

First Quarter Fiscal 2022 Financial Results

Information about Dell Technologies' use of non-GAAP financial information is provided under "Non-GAAP Financial Measures" below.  All comparisons in this press release are year-over-year unless otherwise noted.

Dell Technologies ended the quarter with remaining performance obligations of$42 billion and cash and investments of$15.9 billion. The company has paid down$2.5 billion in debt year-to-date and revised its debt paydown target for its fiscal year 2022 to at least$16.0 billion upon completion of its announced spin-off of VMware.

"We had record first quarter revenue and operating income, and record trailing 12 month cash flow from operations of$14.4 billion -all driven by strength and execution across all three of our business units," said Tom Sweet, chief financial officer, Dell Technologies. "Our focus continues to be on strengthening our capital structure, modernizing our core infrastructure and PC businesses, and continuing to grow in hybrid and private cloud, edge, telecom and as-a-Service."

Operating segments summary

Earlier in May, atDell Technologies World, the company announced new offers for its APEX portfolio of as-a-Service offerings, and a new set of solutions and partnerships designed to extract more value from data at the edge, includingsmart manufacturing solutions. The APEXportfolio of services allows customers to scale IT as needed to launch new applications, kickstart new projects and address the changing needs of their organizations -all managed by Dell and accessed through a single console.

Client Solutions Grouphad record revenue for the first quarter of$13.3 billion, up 20%. Operating income was a record$1.1 billion, up 84%, and 8.2% of Client Solutions Group revenue, as the company innovates across the ecosystem to deliver an enhanced experience for customers looking to work and play effectively from anywhere. Consumer revenue was$3.5 billion, up 42%, while commercial client revenue was$9.8 billion, up 14%.

Key highlights:

• Consumer online business orders up 58%, with XPS notebook orders up 21% and Alienware notebooks orders up 76%
• Double-digit orders growth in Latitude, Precision systems, and Commercial Chromebooks
• Announceda sweeping new portfolio of commercial, consumer and gaming devices to help people create, play and work from anywhere

Infrastructure Solutions Grouprevenue for the first quarter was$7.9 billion, up 5% as customers accelerate their IT investments with focus on hybrid cloud solutions. Servers and networking revenue was$4.1 billion, up 9%, and storage revenue was$3.8 billion. Operating income was$788 million for the first quarter, up 8%, or approximately 10% of Infrastructure Solutions Group revenue.

Key highlights:

• Expanded theDell EMC PowerProtect Cyber Recovery solutionwith multi-cloud options to help customers build a cyber resilient strategy as ransomware threats continue
• Launch ofDell EMC PowerStoresoftware advancements that improve workload performance by up to 25%, building on its novel container-based architecture and supporting the newPowerStore 500, a lower-cost model suitable for a broad range of businesses and use cases with enterprise performance and features
• Launch ofthe next generation ofDell EMC PowerEdgeservers, the most powerful and secure systems to date, embracing AI and addressing customer need to keep pace with IT demands in data centers and at the edge
• Launch of Dell EMC Streaming Data Platformadvancements that offer powerful, real-time analytics at the edge and theDell Technologies Manufacturing Edge Solutionenabling critical applications in smart manufacturing

VMwarerevenue was$3.0 billion for the first quarter, up 9% driven by broad-based strength across a diverse product portfolio. Operating income for the quarter was$841 million, or 28.1% of VMware revenue.

Conference call information

As previously announced, the Company will hold a conference call to discuss its first quarter performance today, May 27, 2021 at 4:30 p.m. CDT. The conference call will be broadcast live over the internet and can be accessed athttps://investors.delltechnologies.com/events-and-presentations/upcoming-events

For those unable to listen to the live broadcast, an archived version will be available at the same location for one year.

Additional financial and operating information may be downloaded from

https://investors.delltechnologies.com/financial-information/quarterly-results

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Non-GAAP Financial Measures:

This press release presents information about Dell Technologies' non-GAAP net revenue, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, non-GAAP net income attributable to non-controlling interests, non-GAAP net income attributable to Dell Technologies Inc. - basic, non-GAAP net income attributable to Dell Technologies Inc. - diluted, non-GAAP earnings per share attributable to Dell Technologies Inc. - basic, non-GAAP earnings per share attributable to Dell Technologies Inc. - diluted, EBITDA, and adjusted EBITDA, which are non-GAAP financial measures provided as a supplement to the results provided in accordance with generally accepted accounting principles in the United States of America ("GAAP"). A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure is provided in the attached tables for each of the fiscal periods indicated.

Special Note on Forward-Looking Statements:

Statements in this press release that relate to future results and events are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 and Section 27A of the Securities Act of 1933 and are based on Dell Technologies' current expectations. In some cases, you can identify these statements by such forward-looking words as "anticipate," "believe," "confidence," "could," "estimate," "expect," "guidance," "intend," "may," "objective," "outlook," "plan," "project," "possible," "potential," "should," "will" and "would," or similar words or expressions that refer to future events or outcomes.

Dell Technologies' results or events in future periods could differ materially from those expressed or implied by these forward-looking statements because of risks, uncertainties, and other factors that include, but are not limited to, the following: risks and uncertainties relating to our agreement to spin off VMware, Inc., including risks that could affect our ability to complete the transaction on the terms announced or at all and the potential effects on our business of the announcement and consummation of the transaction; the effects of the COVID-19 pandemic; competitive pressures; Dell Technologies' reliance on third-party suppliers for products and components, including reliance on single-source or limited-source suppliers; Dell Technologies' ability to achieve favorable pricing from its vendors; adverse global economic conditions and instability in financial markets; Dell Technologies' execution of its growth, business and acquisition strategies; the success of Dell Technologies' cost efficiency measures; Dell Technologies' ability to manage solutions and products and services transitions in an effective manner; Dell Technologies' ability to deliver high-quality products, software, and services; cyber attacks or other data security incidents; Dell Technologies' foreign operations and ability to generate substantial non-U.S. net revenue; Dell Technologies' product, services, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell Technologies' sales channel partners; access to the capital markets by Dell Technologies or its customers; material impairment of the value of goodwill or intangible assets; weak economic conditions and the effect of additional regulation on Dell Technologies' financial services activities; counterparty default risks; the loss by Dell Technologies of any contracts for ISG services and solutions and its ability to perform such contracts at their estimated costs; loss by Dell Technologies of government contracts; Dell Technologies' ability to develop and protect its proprietary intellectual property or obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; disruptions in Dell Technologies' infrastructure; Dell Technologies' ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other tax compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; compliance requirements of changing environmental and safety laws or other laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; Dell Technologies' dependence on the services of Michael Dell and key employees; Dell Technologies' level of indebtedness; and the impact of the financial performance of VMware, Inc.

This list of risks, uncertainties, and other factors is not complete. Dell Technologies discusses some of these matters more fully, as well as certain risk factors that could affect Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the SEC, including Dell Technologies' annual report on Form 10-K for the fiscal year ended January 29, 2021, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the SEC's website at www.sec.gov. Any or all forward-looking statements Dell Technologies makes may turn out to be wrong and can be affected by inaccurate assumptions Dell Technologies might make or by known or unknown risks, uncertainties and other factors, including those identified in this press release. Accordingly, you should not place undue reliance on the forward-looking statements made in this press release, which speak only as of its date. Dell Technologies does not undertake to update, and expressly disclaims any duty to update, its forward-looking statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise.