Dell Technologies Inc. (NYSE:DELL) Q2 2019 Earnings Conference Call - Final Transcript

Sep 06, 2018 • 08:00 am ET


Dell Technologies Inc. (NYSE:DELL) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, and welcome to the Fiscal Year 2019 Second 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 A replay of this webcast will be available at the same location for one year. Following prepared remarks we will conduct a question-and-answer session. (Operator Instructions)

I'd like to turn the call over to Rob Williams, Senior Vice President of Investor Relations. Mr. Williams, you may begin.

Robert L. Williams

Thanks, Regina. Good morning, and thanks for joining us. With me today is our CFO, Tom Sweet; our Vice Chairman, Products and Operations, Jeff Clarke; and our Treasurer, Tyler Johnson. We posted our second quarter press release and our web deck on our website. I encourage you to review these documents for additional perspective. Our Q2 10-Q will be filed on Tuesday, September 11.

As many of you know, on July 2, we announced that we had completed our strategic review and reached an agreement with the Dell Technologies Special Committee of Independent Directors to exchange, subject to Class V common stockholder approval, the outstanding Class V common stock of Dell Technologies for Class C common stock of Dell Technologies or, at the holder's election, cash. We filed our preliminary Form S-4 with the SEC on August 6 and amended S-4 yesterday. We plan to file a definitive S-4 in the coming weeks, at which time we will set a date for the special meeting.

We will be hosting an Analyst Meeting in New York on September 18. And we'll hold a series of roadshow meetings in the weeks following to meet with investors in one-on-one and group settings across multiple cities. Today's call is intended to discuss the results for our second fiscal quarter. And as such, we will not address nor will we take questions related to the Class V transaction. It's important that we allow the process to play out over the coming weeks. And we look forward to further engagement with DVMT stockholders on this topic.

Before I turn it over to Tom, I'd like to remind you of a few highlights. 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 their most directly comparable GAAP measures can be found in our web deck and our press release.

Our Q2 non-GAAP operating income excludes $2.1 billion of adjustments. The majority of these are noncash 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