Dell Technologies Reports Fiscal Year 2018 Fourth Quarter and

Dell Technologies Reports Fiscal Year 2018 Fourth Quarter and Full Year Financial Results

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 the Dell Technologies' business, financial condition, results of operations, and prospects, in its reports filed with the Securities and Exchange Commission, including Dell Technologies' Annual Report on Form 10-K for the fiscal year ended February 3, 2017, quarterly reports on Form 10-Q, and current reports on Form 8-K. These filings are available for review through the Securities and Exchange Commission'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.

DELL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income (Loss) and Related Financial Highlights
(in millions, except per share amounts and percentages; unaudited)

	Three Months Ended			Fiscal Year Ended
	February 2, 2018	February 3, 2017	Change	February 2, 2018	February 3, 2017	Change
Net revenue:
Products	$ 16,798	$ 15,196	11 %	$ 58,801	$ 48,706	21 %
Services	5,137	4,878	5 %	19,859	12,936	54 %
Total net revenue	21,935	20,074	9 %	78,660	61,642	28 %

Cost of net revenue:
Products	14,009	13,313	5 %	50,215	42,169	19 %
Services	2,146	2,230	(4)%	8,391	6,514	29 %
Total cost of net revenue	16,155	15,543	4 %	58,606	48,683	20 %

Gross margin	5,780	4,531	28 %	20,054	12,959	55 %

Operating expenses:
Selling, general, and administrative	5,014	4,928	2 %	19,003	13,575	40 %
Research and development	1,087	1,271	(14)%	4,384	2,636	66 %
Total operating expenses	6,101	6,199	(2)%	23,387	16,211	44 %

Operating loss	(321)	(1,668)	81 %	(3,333)	(3,252)	(2)%

Interest and other, net	(555)	(742)	25 %	(2,355)	(2,104)	(12)%
Loss from continuing operations before income taxes	(876)	(2,410)	64 %	(5,688)	(5,356)	(6)%
Income tax benefit	(323)	(996)	68 %	(1,833)	(1,619)	(13)%
Net loss from continuing operations	(553)	(1,414)	61 %	(3,855)	(3,737)	(3)%
Income from discontinued operations, net of income taxes	—	1,144	(100)%	—	2,019	(100)%
Net loss	(553)	(270)	(105)%	(3,855)	(1,718)	(124)%
Less: Net loss attributable to non-controlling interests	(42)	(34)	(24)%	(127)	(46)	(176)%
Net loss attributable to Dell Technologies Inc.	$ (511)	$ (236)	(117)%	$ (3,728)	$ (1,672)	(123)%

Earnings (loss) per share attributable to Dell Technologies Inc. - basic:
Continuing operations - Class V Common Stock - basic	$ (1.12)	$ 0.64		$ 1.41	$ 1.44
Continuing operations - DHI Group - basic	$ (0.51)	$ (2.68)		$ (7.08)	$ (8.52)
Discontinued operations - DHI Group - basic	$ —	$ 2.02		$ —	$ 4.30

Earnings (loss) per share attributable to Dell Technologies Inc. - diluted:
Continuing operations - Class V Common Stock - diluted	$ (1.12)	$ 0.64		$ 1.39	$ 1.43
Continuing operations - DHI Group - diluted	$ (0.51)	$ (2.68)		$ (7.08)	$ (8.52)
Discontinued operations - DHI Group - diluted	$ —	$ 2.02		$ —	$ 4.30

Weighted-average shares outstanding:
Basic - Class V Common Stock	199	215		203	217
Diluted - Class V Common Stock	199	215		203	217
Basic - DHI Group	568	566		567	470
Diluted - DHI Group	568	566		567	470

*Percentage of Total Net Revenue:*
Gross margin	26 %	23 %		25 %	21 %
Selling, general, and administrative	23 %	25 %		24 %	22 %
Research and development	5 %	6 %		6 %	4 %
Operating expenses	28 %	31 %		30 %	26 %
Operating loss	(1)%	(8)%		(4)%	(5)%
Loss from continuing operations before income taxes	(4)%	(12)%		(7)%	(9)%
Net loss from continuing operations	(3)%	(7)%		(5)%	(6)%

Income tax rate	37 %	41 %		32 %	30 %

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