Dell Technologies Inc (NYSE: DELL) stock fell 3.40% after the company posted mixed results for the third quarter of FY 20. DELL in the third quarter of FY 20 has reported the adjusted earnings per share of $1.75. The company had reported the adjusted revenue growth of 1 percent to $22.84 billion in the third quarter of FY 20, missing the analysts’ estimates for revenue of $23.04 billion.
DELL has reported 21% increase in the consolidated net income to $1.4 billion. Adjusted EBITDA was $2.9 billion or 12.5% of revenue and $11.6 billion on a trailing 12 month basis. The company has generated $1.6 billion of adjusted free cash flow in third quarter due to strong profitability and working capital discipline.
Moreover, the company’s storage business grew 7% to $4.1 billion and the company saw a strong Q3 demand in data protection and hyper converged with VxRail orders up 82%. The company expect to gain storage share in North America in calendar Q3. Excluding Greater China, the Q3 server order revenue had declined 16% to $4.2 billion. Infrastructure Solutions Group revenue fell 6% to $8.4 billion. The deferred revenue balance has risen by 17% to $25.9 billion on the back of services and software businesses adding revenue and cash flow stability. Gross margin has expanded by 11% to $7.8 billion and it was 33.9% of revenue up 300 basis points due to lower component cost and pricing discipline. Operating expenses were up 8% to $5.3 billion, due in part to investments the company has made in sales coverage to broaden solutions sales capabilities and expand buyer base. Operating income was up 18% to $2.4 billion or 10.7% of revenue.
Additionally, the company has repaid approximately $1.1 billion of gross debt in the third quarter and $3.5 billion year-to-date. And the company is in position to repay approximately $5 billion of gross debt in total in fiscal year 2020. DELL has ended the quarter with $9.4 billion of cash and investments.
The company now expect fiscal 2020 non-GAAP revenue range to be $91.8 billion to $92.5 billion. DELL now expect non-GAAP operating income range to be now $10 billion to $10.2 billion and the non-GAAP EPS guidance range to now $7.25 to $7.40 for FY 20.