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The company said it sold the EUC business to KKR & Co. Inc. for $3.5 billion in the fiscal quarter ended August 4, 2024, and used the net proceeds from the July 2024 Senior Notes and the EUC sale, along with cash on hand, to repay the $9,195 million outstanding balance of its term A-2 facility. $5.0 billion

10-QQuarterly reportFiled Period of report Summary published (UTC)

Key points

AI summary

  1. The company said it sold the EUC business to KKR & Co. Inc. for $3.5 billion in the fiscal quarter ended August 4, 2024, and used the net proceeds from the July 2024 Senior Notes and the EUC sale, along with cash on hand, to repay the $9,195 million outstanding balance of its term A-2 facility. $5.0 billion

  2. The company said gross margin for the fiscal quarter ended August 4, 2024 rose to $8,356 million from $6,164 million a year earlier. Gross margin as a percentage of net revenue was 64%, compared with 69% a year earlier, and the company attributed the increase mainly to higher amortization of intangible assets related to the VMware Merger.

  3. The company said its provision for income taxes for the fiscal quarter ended August 4, 2024 rose to $4,238 million from $271 million a year earlier, and interest expense was $1,064 million. The company cited the change in the jurisdictional mix of income from the intra-group transfer of IP rights to the United States and interest on debt incurred for the VMware Merger as the main factors, respectively.

  4. The company said net cash provided by operating activities for the first 3 fiscal quarters of fiscal 2024 was $14,358 million, up $1,101 million from a year earlier. Over the same period, it paid dividends of $7,330 million and made stock repurchases of $7,176 million.

Key figures

Quarter ended August 4, 2024

Revenue
$13.1B
Operating income
$3.8B
Net income
−$1.9B
EPS
−$0.40
Gross profit
$8.4B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

EUC Sale and July 2024 Senior Notes Used to Repay Term A-2 Facility

The company said it sold the EUC business to KKR & Co. Inc. for $3.5 billion in the fiscal quarter ended August 4, 2024, and used the net proceeds from the July 2024 Senior Notes and the EUC sale, along with cash on hand, to repay the $9,195 million outstanding balance of its term A-2 facility. $5.0 billion

Source · Based on the MD&A text of the filing

Quarterly Gross Margin of $8,356 million and Gross Margin Rate of 64%

The company said gross margin for the fiscal quarter ended August 4, 2024 rose to $8,356 million from $6,164 million a year earlier. Gross margin as a percentage of net revenue was 64%, compared with 69% a year earlier, and the company attributed the increase mainly to higher amortization of intangible assets related to the VMware Merger.

Source · Based on the MD&A text of the filing

Quarterly Income Tax Provision of $4,238 million and Interest Expense of $1,064 million

The company said its provision for income taxes for the fiscal quarter ended August 4, 2024 rose to $4,238 million from $271 million a year earlier, and interest expense was $1,064 million. The company cited the change in the jurisdictional mix of income from the intra-group transfer of IP rights to the United States and interest on debt incurred for the VMware Merger as the main factors, respectively.

Source · Based on the MD&A text of the filing

Fiscal 2024 Three-Quarter Operating Cash Flow and Capital Returns

The company said net cash provided by operating activities for the first 3 fiscal quarters of fiscal 2024 was $14,358 million, up $1,101 million from a year earlier. Over the same period, it paid dividends of $7,330 million and made stock repurchases of $7,176 million.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗
Source: SEC EDGAR (U.S. Securities and Exchange Commission). Item captions are the SEC's. The summary is for reference only and is not investment advice.