Dell Technologies Inc(NYSE: DVMT) reported a mixed fourth quarter of 2018 performance with GAAP operating loss of over $320 million. The GAAP revenue reached $21.9 billion during the quarter. The Storage revenue lost 11% yoy to $4.2 billion. Operating income for ISG was $748 million or 8.5% of revenue, which fell 350 basis points against pco on the back of a better mix of servers and, to a lesser extent, higher component costs. The Gross margins was $7 billion, up 6% and was 31.6% of revenue, but fell 40 basis points, on the back of mixed dynamics within ISG given the strength in servers. The OpEx rose 3% yoy to $4.9 billion, which was 22.1% of revenue, and fell 100 basis points.
But, Non-GAAP revenue rose 8% to $22.2 billion, driven by strong top line velocity for client, servers and VMware, coupled with a better demand for storage. The Revenue for the Infrastructure Solutions Group rose 5% yoy to $8.8 billion, boosted by servers and networking, which rose 27% to $4.6 billion. Revenue for Client Solutions Group rose 8% yoy to $10.6 billion, boosted by higher average selling prices across both commercial and consumer and double-digit growth in client, software and peripherals. The Commercial revenue rose 9% on the back of the average selling price expansion for notebooks and workstations, as well as double-digit revenue growth in displays. The Consumer revenue enhanced 6%, on the back of average selling prices for both notebooks and XPS products.
The Adjusted EBITDA rose 13% to $2.5 billion or 11.1% of revenue during the quarter. The Deferred revenue reached $22.2 billion, which is a rise of $3. 6 billion year-over-year and enhanced $2.2 billion sequentially, boosted by growth in maintenance, flexible consumption models an extended warranty.
Meanwhile, VMware segment revenue surged 20% to $2.3 billion while operating income was $834 million or 35.8% of revenue. Revenue from the group’s other businesses, which include SecureWorks, RSA, Pivotal and Boomi, was $492 million, and enhanced 3%.
Dell Technologies stock surged over 18% in the last three months. But the stock slightly fell over 0.2% in the afterhours session on March 8th, 2018.