Dell Technologies Inc. (NYSE:DVMT) Q1 2019 Earnings Conference Call - Preliminary Transcript

Jun 04, 2018 • 08:00 am ET

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Dell Technologies Inc. (NYSE:DVMT) Q1 2019 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Good morning and welcome to the Fiscal Year 2019 First Quarter Earnings Conference Call for Dell Technologies, Inc. I'd like to inform all participants this call is being recorded at the request of Dell Technologies. This broadcast is the copyrighted property of Dell Technologies, Inc.

Any rebroadcast of this information in whole or part without the prior written permission of Dell Technologies is prohibited. As a reminder, the company is also simulcasting this call at investors.delltechnologies.com. A replay of this webcast will be available at this same location for one year. Following prepared remarks, we will conduct a question and answer session. I'd like to turn the call over to Rob Williams, Senior Vice President of Investor Relations. Mr. Williams, you may begin.

Executive
Rob Williams

Good morning and thanks for joining us. With me today is CFO Tom Sweet, our Vice Chairman, Products and Operations, Jeff Clarke, and our Treasurer, Tyler Johnson. We posted our first-quarter press release and our web deck on our website. I encourage you to review these documents for additional perspective. Our Q1 10-Q will be filed on Tuesday, June 12th. Before I turn it over to Tom, I'd like to highlight a few items.

During this call, we will reference non-GAAP financial measures, including non-GAAP revenue, gross margin, operating expenses, operating income, net income, EBITDA, and adjusted EBITDA. A reconciliation of these measures to its most directly comparable GAAP measure can be found in our web deck and press release. Our Q1 non-GAAP operating income includes $2.2 billion of adjustments. The majority of these are non-cash and relate to purchase accounting and amortization of intangible assets.

Please refer to the supplemental slides beginning on Slide 21 for details on our non-GAAP adjustments. Please also note that all growth percentages refer to year-over-year change unless otherwise specified and that all financial results today are based on the new revenue accounting standard ASC 606. For historical recast financial information, including the full P&L, please see the slides in our web deck beginning on Slide 28, and for more detail on ASC 606, please refer to our April 26th investor call.

The replay and slides are available on our Investor Relations website. 10 stocks we like better than Dell Technologies Inc. Class V

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Operator
Operator

We had a strong first quarter with balanced growth across all business units, regions, and customer segments. Our broad set of capabilities and Better Together philosophy drove top-line momentum and improved profitability.

Executive
Rob Williams

We generated seasonally strong operating cash flow and continued to pay down debt, even as we drove improved profitability. The velocity in Server, Client, and VMware that we saw building last year has continued into FY '19, and we're making progress in Storage. In addition to the broad strength across the business during Q1, we hosted 14,000 customers, partners, and industry analysts at Dell Technologies World and introduced a new slate of solutions, which Jeff will touch on more in a moment.

We rode out the Dell Technologies Advantage