Dell Technologies has upped its financial guidance for the year after reporting an 18% jump in GAAP revenue to $22.9bn for the second quarter. The year-over-year improvement will provide a fillip to the company as it moves closer to becoming a public company again.
There was double-digit growth across all main company segments, including the Infrastructure Solutions Group, Client Solutions Group and VMware, where Dell holds a majority stake in the independently trading firm.
During the quarter, the company made a GAAP operating loss of $13m, and generated a non-GAAP operating income of $2.1bn, up 13%. Cash flow from operations was $2.6bn, and excluding the impact of financing receivables, cash flow from operations would have been $3.1bn.
Michael Dell, chairman and CEO of Dell Technologies, said: "As our results indicate, Dell Technologies is perfectly positioned to grow, gain share, drive innovation and be our customers' best, most trusted partner on the journey to their digital future."
Tom Sweet, chief financial officer at Dell Technologies, added: "Looking toward the second half of fiscal 2019, we'll balance this growth by executing across strategic areas of the business, including driving additional share gains, continuing to generate strong cash flow and addressing our customers' needs with our full range of capabilities.
"Given our momentum in the first half of the fiscal year, we have increased the revenue, operating income and net income guidance ranges we provided on 2 July.
The company ended the second quarter with a cash and investments balance of $21.5bn. As it further prepares to go public again, in the second quarter Dell paid down approximately $2.6bn of core debt, and before the end of the quarter the company prepaid $600m of additional debt. Over the past two years, Dell has paid down around $13.7bn in gross debt.
Infrastructure Solutions Group revenue for the second quarter was a record $9.2bn, a 24% increase. This was driven by revenue of $4.2bn in storage, a 13% increase, and revenue of $5.1bn in servers and networking, a 34% increase. Operating income for the second quarter was $1bn.
The Client Solutions Group saw revenue for the second quarter at $11.1bn, up 13% percent, with double-digit growth across both Commercial and Consumer. Operating income for the second quarter was $425m. And VMware revenue for the quarter was $2.2bn, up 11% percent, with operating income of $736m.
Second quarter revenue from other businesses, including Pivotal, Secureworks, RSA Security, Virtustream and Boomi was $574m, up 6%.
As mentioned, for the full year, the company is adjusting upwards the guidance ranges provided on 2 July, with Dell now expecting non-GAAP revenues to be between $90.5bn and $92bn for the year, and non-GAAP operating income to be between $8.4bn and $8.8bn. Non-GAAP net income is now down for between $4.9bn and $5.3bn.
