8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 15, 2013

Dell Inc.

(Exact name of registrant as specified in its charter)

Delaware	0-17017	74-2487834
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One Dell Way, Round Rock, Texas 78682

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (800) 289-3355

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 — Results of Operations and Financial Condition.

On August 15, 2013, Dell Inc. (“Dell”) issued a press release announcing its financial results for its fiscal quarter ended August 2, 2013. A copy of the press release is furnished as Exhibit 99.1 to this report. Concurrently with that press release, Dell also posted on its investor relations website a Letter from the Chief Financial Officer and an Earnings Presentation, which are furnished as Exhibits 99.2 and 99.3, respectively, to this report.

To supplement Dell’s condensed consolidated financial statements presented on the basis of accounting principles generally accepted in the United States of America (“GAAP”) which are furnished in Exhibit 99.1 to this report, Dell has presented information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share (collectively, the “non-GAAP financial measures”), which are not measurements of financial performance under GAAP. A reconciliation of each historical non-GAAP financial measure to the most comparable GAAP financial measure for Dell’s fiscal quarter ended August 2, 2013 and certain prior fiscal periods is included in the tables set forth under the heading “Reconciliation of Non-GAAP Financial Measures” in Exhibit 99.1. In addition a detailed discussion of Dell’s reasons for including the non-GAAP financial measures and the limitations associated with those measures is included under “Use of Non-GAAP Financial Measures” in Exhibit 99.1. This additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for net income, operating income, gross margin, operating expenses, and earnings per share prepared in accordance with GAAP.

In accordance with General Instruction B.2 to Form 8-K, the information contained in this current report, including Exhibits 99.1, 99.2 and 99.3 hereto, is being “furnished” with the Securities and Exchange Commission and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities under such section. Furthermore, such information shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, unless specifically identified as being incorporated therein by reference.

Item 9.01 — Financial Statements and Exhibits.

Dell herewith furnishes the following documents as an exhibit to this report:

(d) Exhibits

Exhibit Number	Description
99.1	Press Release Issued by Dell Inc., dated August 15, 2013
99.2	Letter from the Chief Financial Officer
99.3	Earnings Presentation

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DELL INC.
Date: August 15, 2013	By:	/s/ Janet B. Wright
		Janet B. Wright,
		Vice President and Assistant Secretary
		(Duly Authorized Officer)

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EXHIBIT INDEX

Exhibit Number	Description
99.1	Press Release Issued by Dell Inc., dated August 15, 2013
99.2	Letter from the Chief Financial Officer
99.3	Earnings Presentation

EX-99.1

Exhibit 99.1

FY14 Q2 Press Release (FINAL)

8/15/13 10:45 am

Dell Reports Fiscal Year 2014 Second Quarter Financial Results

• Revenue of $14.5 billion, flat year over year

• Enterprise Solutions, Software and Services revenue up 9 percent

• GAAP earnings of $0.12 per share; non-GAAP earnings of $0.25 per share

ROUND ROCK, Texas, Aug. 15, 2013 - Dell today announced fiscal 2014 second quarter results, with revenue of $14.5 billion, GAAP earnings of $0.12 per share and non-GAAP earnings of $0.25 per share. The company’s Enterprise Solutions, Services and Software (ES&S) revenue was $5.8 billion, growing 9 percent year over year, including the benefit of the Quest acquisition. In End User Computing, revenue was down 5 percent year over year.

“In a challenging environment, we remain committed to our strategy and our customers, and we’re encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our Enterprise Solutions, Services and Software businesses,” said Brian Gladden, Dell chief financial officer.

Results

• Revenue in the quarter was $14.5 billion, flat from the previous year.

• GAAP operating income for the quarter was $272 million, or 1.9 percent of revenue. Non-GAAP operating income was $602 million, or 4.1 percent of revenue.

• GAAP earnings per share was 12 cents, down 71 percent from the previous year; non-GAAP earnings per share was 25 cents, down 50 percent.

• Cash flow from operations in the quarter was $1.7 billion. Dell ended the quarter with $13.9 billion in cash and investments.

Fiscal-Year 2014 Second Quarter Results

	Second Quarter
(in millions)	FY14		FY13		Change
Revenue	$	14,514	$	14,483		0	%
Operating Income (GAAP)	$	272	$	901		(70	)%
Net Income (GAAP)	$	204	$	732		(72	)%
EPS (GAAP)	$	0.12	$	0.42		(71	)%
Operating Income (non-GAAP)	$	602	$	1,123		(46	)%
Net Income (non-GAAP)	$	433	$	875		(51	)%
EPS (non-GAAP)	$	0.25	$	0.50		(50	)%

Information about Dell’s use of non-GAAP financial information is provided under “Non-GAAP Financial Measures” below. Non-GAAP financial information excludes amortization of purchased intangibles, severance and facility actions, acquisition-related charges, costs incurred in Fiscal 2014 related to Dell’s proposed merger, and other items. All comparisons in this press release are year over year unless otherwise noted.

Operating Segments Summary:

• Enterprise Solutions Group revenue was $3.3 billion, an 8 percent increase. Operating income for the quarter was $137 million, a 9 percent decrease. Dell server, networking and peripherals revenue increased 10 percent, the fifth consecutive quarter of growth for this business, driven by continued strength in hyper-scale data center servers. Dell networking continued to grow, with a 19 percent revenue increase. Dell storage revenue declined 7 percent.

• Dell Services revenue was $2.1 billion, up 2 percent, driven by a 3 percent increase in support and deployment revenue and a 5 percent increase for infrastructure, cloud and security services revenue. Applications and business process services revenue declined 6 percent. Total Services operating income was $339 million, a 1 percent increase.

• Dell Software revenue was $310 million, and recorded an operating loss. The company is continuing to enhance its software capabilities with investments in this business that increase R&D and sales capacity.

• End User Computing revenue was $9.1 billion in the quarter, a 5 percent decrease. Operating income for the quarter was $205 million, a 71 percent decrease. Dell desktop and thin client revenue increased 1 percent, mobility revenue declined 10 percent, and revenue from software from third parties and peripherals declined 5 percent. Dell was the only vendor among the top five worldwide to increase PC unit-shipment share both year over year and sequentially in the past two calendar quarters, according to IDC.

Company Outlook:

Given the company’s announcement on Feb. 5 of a definitive merger agreement to take Dell private, the company is not providing an outlook.

About Dell

Dell Inc. (NASDAQ: DELL) listens to customers and delivers innovative technology and services that give them the power to do more. For more information, visit www.dell.com. To communicate directly with Dell, go to www.dell.com/dellshares. Follow Dell on its Investor Relations Twitter account at: http://twitter.com/dellshares or hashtag #DellEarnings.

Non-GAAP Financial Measures:

This press release includes information about non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share (collectively with non-GAAP gross margin and non-GAAP operating expenses, the “non-GAAP financial measures”), which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. In the following tables, Dell has provided a reconciliation of each historical non-GAAP financial measure to the most directly comparable GAAP financial measure under the heading “Reconciliation of Non-GAAP Financial Measures.” Dell encourages investors to review the reconciliation in conjunction with Dell’s presentation of these non-GAAP financial measures.

Special Note on Forward Looking Statements:

Statements in this press release that relate to future results and events are forward-looking statements and are based on Dell’s current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including: effects of Dell’s proposed merger; intense competition; Dell’s reliance on third-party suppliers for product components, including reliance on several single-sourced or limited-sourced suppliers; Dell’s ability to achieve favorable pricing from its vendors; weak global economic conditions and instability in financial markets; Dell’s ability to manage effectively the change involved in implementing strategic initiatives; successful implementation of Dell’s acquisition strategy; Dell’s cost-efficiency measures; Dell’s ability to effectively manage periodic product and services transitions; Dell’s ability to deliver consistent quality products and services; Dell’s ability to generate substantial non-U.S. net revenue; Dell’s product, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell’s sales channel partners; access to the capital markets by Dell or its customers; weak economic conditions and additional regulation affecting Dell’s financial services activities; counterparty default; customer terminations of or pricing changes in services contracts, or Dell’s failure to perform as it anticipates at the time it enters into services contracts; loss of government contracts; Dell’s ability to obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; infrastructure disruptions; cyber-attacks or other data security breaches; Dell’s ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; Dell’s ability to attract, retain, and motivate key personnel; Dell’s ability to maintain strong internal controls; changing environmental and safety laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; and other risks and uncertainties discussed in Dell’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended February 1, 2013, as amended on June 3, 2013. Factors or risks that could cause Dell’s actual results to differ materially from the results it anticipates also include: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (2) the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; (3) the failure to obtain the necessary financing arrangements set forth in the debt and equity commitment letters delivered pursuant to the merger agreement; (4) risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction; and (5) the effect of the announcement of the proposed merger on the Company’s relationships with its customers, operating results and business generally. Dell assumes no obligation to update its forward-looking statements.

Additional Information and Where to Find It

In connection with the proposed merger transaction, the Company filed with the SEC a definitive proxy statement and other relevant documents, including a form of proxy card, on May 31, 2013, and a revised definitive proxy statement on August 14, 2013. The definitive proxy statement and a form of proxy have been mailed to the Company’s stockholders. Stockholders are urged to read the proxy statement and any other documents filed with the SEC in connection with the proposed merger or incorporated by reference in the proxy statement because they contain important information about the proposed merger.

Investors will be able to obtain a free copy of documents filed with the SEC at the SEC’s website at http://www.sec.gov. In addition, investors may obtain a free copy of the Company’s filings with the SEC from the Company’s website at http://content.dell.com/us/en/corp/investor-financial-reporting.aspx or by directing a request to: Dell Inc. One Dell Way, Round Rock, Texas 78682, Attn: Investor Relations, (512) 728-7800, investor_relations@dell.com.

The Company and its directors, executive officers and certain other members of management and employees of the Company are “participants” in the solicitation of proxies from stockholders of the Company in favor of the proposed merger. Information regarding the persons who, under the rules of the SEC, are participants in the solicitation of the stockholders of the Company in connection with the proposed merger and their direct or indirect interests, by security holdings or otherwise, which may be different from those of the Company’s stockholders generally, are set forth in the proxy statement and the other relevant documents filed with the SEC. You can find information about the Company’s executive officers and directors in its Annual Report on Form 10-K for the fiscal year ended February 1, 2013, as amended on June 3, 2013.

Consolidated statements of income, financial position and cash flows and other financial data follow.

Dell is a trademark of Dell Inc. Dell disclaims any proprietary interest in the marks and names of others.

Contact Information
Media Contacts: (512) 728-4100
David Frink	Dell	(512) 728-2678	david_frink@dell.com
Investor Relations Contacts:
David Mehok	Dell	(512) 728-4225	david_mehok@Dell.com
Karina Franco	Dell	(512) 728-5224	karina_franco@dell.com

DELL INC.

Condensed Consolidated Statement of Income and Related Financial Highlights

(in millions, except per share data and percentages)

(unaudited)

	Three Months Ended									% Growth Rates
	August 2, 2013			May 3, 2013			August 3, 2012			Sequential			Yr. to Yr.
Net revenue
Products	$	11,326		$	10,902		$	11,403			4	%		(1	%)
Services, including software related		3,188			3,172			3,080			1	%		4	%
Total net revenue		14,514			14,074			14,483			3	%		0	%
Cost of net revenue
Products		9,767			9,244			9,280			6	%		5	%
Services, including software related		2,058			2,083			2,065			(1	%)		0	%
Total cost of net revenue		11,825			11,327			11,345			4	%		4	%
Gross margin		2,689			2,747			3,138			(2	%)		(14	%)
Operating expenses
Selling, general, and administrative		2,097			2,208			1,976			(5	%)		6	%
Research, development, and engineering		320			313			261			2	%		23	%
Total operating expenses		2,417			2,521			2,237			(4	%)		8	%
Operating income		272			226			901			20	%		(70	%)
Interest and other, net		(53	)		(68	)		(63	)		21	%		16	%
Income before income taxes		219			158			838			38	%		(74	%)
Income tax provision		15			28			106			(46	%)		(86	%)
Net income	$	204		$	130		$	732			56	%		(72	%)
Earnings per share:
Basic	$	0.12		$	0.07		$	0.42			71	%		(71	%)
Diluted	$	0.12		$	0.07		$	0.42			71	%		(71	%)
Cash dividends declared per common share	$	0.08		$	0.08		$	—
Weighted average shares outstanding:
Basic		1,757			1,748			1,747			0	%		1	%
Diluted		1,764			1,761			1,753			0	%		1	%
Percentage of Total Net Revenue:
Gross margin		18.5	%		19.5	%		21.6	%
Selling, general, and administrative		14.4	%		15.7	%		13.6	%
Research, development, and engineering		2.2	%		2.2	%		1.8	%
Operating expenses		16.6	%		17.9	%		15.4	%
Operating income		1.9	%		1.6	%		6.2	%
Income before income taxes		1.5	%		1.1	%		5.8	%
Net income		1.4	%		0.9	%		5.1	%
Income tax rate		6.9	%		17.6	%		12.7	%

Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

DELL INC.

Condensed Consolidated Statement of Income and Related Financial Highlights

(in millions, except per share data and percentages)

(unaudited)

	Six Months Ended						% Growth Rates
	August 2, 2013			August 3, 2012			Yr. to Yr.
Net revenue
Products	$	22,228		$	22,826			(3	%)
Services, including software related		6,360			6,079			5	%
Total net revenue		28,588			28,905			(1	%)
Cost of net revenue
Products		19,011			18,610			2	%
Services, including software related		4,141			4,090			1	%
Total cost of net revenue		23,152			22,700			2	%
Gross margin		5,436			6,205			(12	%)
Operating expenses
Selling, general, and administrative		4,305			3,985			8	%
Research, development, and engineering		633			495			28	%
Total operating expenses		4,938			4,480			10	%
Operating income		498			1,725			(71	%)
Interest and other, net		(121	)		(95	)		(27	%)
Income before income taxes		377			1,630			(77	%)
Income tax provision		43			263			(84	%)
Net income	$	334		$	1,367			(76	%)
Earnings per share:
Basic	$	0.19		$	0.78			(76	%)
Diluted	$	0.19		$	0.77			(75	%)
Cash dividends declared per common share	$	0.16		$	—
Weighted average shares outstanding:
Basic		1,752			1,753			0	%
Diluted		1,763			1,764			0	%
Percentage of Total Net Revenue:
Gross margin		19.0	%		21.5	%
Selling, general, and administrative		15.1	%		13.8	%
Research, development, and engineering		2.2	%		1.7	%
Operating expenses		17.3	%		15.5	%
Operating income		1.7	%		6.0	%
Income before income taxes		1.3	%		5.6	%
Net income		1.2	%		4.7	%
Income tax rate		11.4	%		16.1	%

Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

DELL INC.

Segment Information

(in millions, except percentages)

(unaudited)

	Three Months Ended									% Growth Rates
	August  2, 2013(a)			May  3, 2013(a)			August 3, 2012			Sequential			Yr. to Yr.
End User Computing (“EUC”):
Net Revenue:
Desktops and thin client	$	3,550		$	3,273		$	3,504			8	%		1	%
Mobility		3,569			3,618			3,946			(1	%)		(10	%)
Third-party software and peripherals		2,020			2,029			2,121			0	%		(5	%)
Total EUC Revenue		9,139			8,920			9,571			2	%		(5	%)
External EUC revenue		8,899			8,714			9,353
Internal EUC revenue		240			206			218
Operating income:
EUC operating income		205			224			696			(8	%)		(71	%)
% of segment revenue		2.2	%		2.5	%		7.3	%
% of total segment operating income		33	%		35	%		59	%
Enterprise Solutions Group (“ESG”):
Net Revenue:
Servers, peripherals, and networking		2,892			2,669			2,622			8	%		10	%
Storage		432			424			464			2	%		(7	%)
Total ESG revenue		3,324			3,093			3,086			7	%		8	%
External ESG revenue		3,173			2,959			2,941
Internal ESG revenue		151			134			145
Operating income:
ESG operating income		137			136			151			1	%		(9	%)
% of segment revenue		4.1	%		4.4	%		4.9	%
% of total segment operating income		22	%		21	%		13	%
Dell Software Group:
Net Revenue:
Total Dell Software Group revenue		310			295			95			5	%		228	%
Operating income:
Dell Software Group operating income		(62	)		(85	)		(11	)		27	%		(447	%)
% of segment revenue		-20.1	%		-28.7	%		-12.0	%
% of total segment operating income		-10	%		-13	%		-1	%
Dell Services:
Net Revenue:
Support and deployment		1,223			1,202			1,192			2	%		3	%
Infrastructure, cloud, and security services		601			612			574			(2	%)		5	%
Applications and business process services		312			295			331			6	%		(6	%)
Total Dell Services revenue		2,136			2,109			2,097			1	%		2	%
External Dell Services revenue		2,132			2,106			2,094
Internal Dell Services revenue		4			3			3
Operating income:
Dell Services operating income	$	339		$	370		$	336			(9	%)		1	%
% of segment revenue		15.9	%		17.6	%		16.0	%
% of total segment operating income		55	%		57	%		29	%
Reconciliation to consolidated net revenue:
Total segment revenue	$	14,909		$	14,417		$	14,849
Less internal revenue		(395	)		(343	)		(366	)
Total consolidated net revenue	$	14,514		$	14,074		$	14,483
Reconciliation to consolidated operating income:
Total segment operating income	$	619		$	645		$	1,172
Unallocated corporate expenses(b)		(17	)		(55	)		(49	)
Amortization of intangible assets		(196	)		(196	)		(150	)
Severance and facility actions and acquisition-related costs		(87	)		(80	)		(72	)
Other (c)		(47	)		(88	)		—
Total consolidated operating income	$	272		$	226		$	901

^(a)  Includes the results of Dell’s Fiscal 2013 acquisitions.

^(b)  Unallocated corporate expenses include broad based long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell’s segments.

^(c) Other includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

DELL INC.

Segment Information

(in millions, except percentages)

(unaudited)

	Six Months Ended						% Growth Rates
	August  2, 2013(a)			August 3, 2012			Yr. to Yr.
End User Computing (“EUC”):
Net Revenue:
Desktops and Thin Client	$	6,823		$	6,839			0	%
Mobility		7,187			8,274			(13	%)
Third-party software and peripherals		4,049			4,290			(6	%)
Total EUC Revenue		18,059			19,403			(7	%)
External EUC revenue		17,613			18,985
Internal EUC revenue		446			418
Operating income:
EUC operating income		429			1,335			(68	%)
% of segment revenue		2.4	%		6.9	%
% of total segment operating income		34	%		60	%
Enterprise Solutions Group (“ESG”):
Net Revenue:
Servers, peripherals, and networking		5,561			4,965			12	%
Storage		856			937			(9	%)
Total ESG revenue		6,417			5,902			9	%
External ESG revenue		6,132			5,622
Internal ESG revenue		285			280
Operating income:
ESG operating income		273			230			19	%
% of segment revenue		4.3	%		3.9	%
% of total segment operating income		22	%		11	%
Dell Software Group:
Net Revenue:
Total Dell Software Group revenue		605			133			355	%
Operating income:
Dell Software Group operating income		(147	)		(17	)		(765	%)
% of segment revenue		-24.3	%		-12.8	%
% of total segment operating income		-12	%		-1	%
Dell Services:
Net Revenue:
Support and deployment		2,425			2,368			2	%
Infrastructure, cloud, and security services		1,213			1,124			8	%
Applications and business process services		607			678			(10	%)
Total Dell Services revenue		4,245			4,170			2	%
External Dell Services revenue		4,238			4,165
Internal Dell Services revenue		7			5
Operating income:
Dell Services operating income	$	709		$	674			5	%
% of segment revenue		16.7	%		16.2	%
% of total segment operating income		56	%		30	%
Reconciliation to consolidated net revenue:
Total segment revenue	$	29,326		$	29,608
Less internal revenue		(738	)		(703	)
Total consolidated net revenue	$	28,588		$	28,905
Reconciliation to consolidated operating income:
Total segment operating income	$	1,264		$	2,222
Unallocated corporate expenses(b)		(72	)		(89	)
Amortization of intangible assets		(392	)		(260	)
Severance and facility actions and acquisition-related costs		(167	)		(148	)
Other (c)		(135	)		—
Total consolidated operating income	$	498		$	1,725

^(a)  Includes the results of Dell’s Fiscal 2013 acquisitions.

^(b)  Unallocated corporate expenses include broad based long-term incentives, certain short-term incentive compensation expenses, and other corporate items that are not allocated to Dell’s segments.

^(c) Other includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

DELL INC.

Condensed Consolidated Statement of Financial Position

(in millions, except ratios)

(unaudited)

	August 2,			May 3,			August 3,
	2013			2013			2012 (a)
Assets:
Current assets:
Cash and cash equivalents	$	11,185		$	10,419		$	11,519
Short-term investments		643			486			372
Accounts receivable, net		6,591			6,440			6,829
Short-term financing receivables, net		3,131			2,991			3,174
Inventories, net		1,468			1,387			1,615
Other current assets		3,848			3,936			3,741
Total current assets		26,866			25,659			27,250
Property, plant and equipment, net		2,212			2,136			2,058
Long-term investments		2,048			2,303			2,738
Long-term financing receivables, net		1,469			1,383			1,344
Goodwill		9,253			9,289			7,558
Purchased intangible assets, net		2,990			3,176			2,609
Other non-current assets		1,033			845			540
Total assets	$	45,871		$	44,791		$	44,097
Liabilities and Stockholders’ Equity:
Current liabilities:
Short-term debt	$	2,736		$	3,133		$	2,609
Accounts payable		12,051			10,990			11,193
Accrued and other		3,657			3,402			3,054
Short-term deferred revenue .		4,312			4,265			3,856
Total current liabilities		22,756			21,790			20,712
Long-term debt		4,075			4,115			5,832
Long-term deferred revenue		4,003			3,963			3,915
Other non-current liabilities		4,256			4,163			3,892
Total liabilities		35,090			34,031			34,351
Total Dell stockholders’ equity		10,781			10,739			9,746
Noncontrolling interest		—			21			—
Total stockholder’s equity		10,781			10,760			9,746
Total liabilities and equity	$	45,871		$	44,791		$	44,097
Ratios:
Days of sales outstanding (b)		45			45			46
Days supply in inventory		11			11			13
Days in accounts payable		(92	)		(87	)		(89	)
Cash conversion cycle		(36	)		(31	)		(30	)
Average total revenue/unit (approximate)	$	1,410		$	1,460		$	1,390

^(a) Certain prior year amounts have been reclassified from accrued and other liabilities and other non-current liabilities on the Condensed Consolidated Statements of Financial Position to short-term deferred revenue and long-term deferred revenue, respectively, to conform to the current year presentation.

^(b) Days of sales outstanding (“DSO”) is based on the ending net trade receivables and most recent quarterly revenue for each period. DSO includes the effect of product costs related to customer shipments not yet recognized as revenue that are classified as other current assets. At August 2, 2013, May 3, 2013, and August 3, 2012, DSO and days of customer shipments not yet recognized were 41 and 4 days, 41 and 4 days, and 42 and 4 days, respectively.

Note: Ratios are calculated based on underlying data in thousands.

DELL INC.

Condensed Consolidated Statements of Cash Flows and Related Financial Highlights

(in millions, unaudited)

	Three Months Ended						Six Months Ended
	August 2,			August 3,			August 2,			August 3,
	2013			2012			2013			2012
Cash flows from operating activities:
Net income	$	204		$	732		$	334		$	1,367
Adjustments to reconcile net income to net cash provided by operating activities:		1,474			(95	)		1,305			(868	)
Change in cash from operating activities		1,678			637			1,639			499
Cash flows from investing activities:
Investments:
Purchases		(76	)		(517	)		(405	)		(1,190	)
Maturities and sales		172			1,800			489			2,440
Capital expenditures		(164	)		(120	)		(322	)		(262	)
Proceeds from the sale of facility, land, and other assets		—			34			—			34
Collections on purchased financing receivables		20			47			49			102
Acquisitions of businesses, net of cash received		(264	)		(2,166	)		(264	)		(2,411	)
Divestitures of businesses, net of cash transferred		44			—			48			—
Change in cash from investing activities		(268	)		(922	)		(405	)		(1,287	)
Cash flows from financing activities:
Repurchase of common stock		—			(400	)		—			(724	)
Cash dividends paid		(141	)		—			(283	)		—
Issuance of common stock under employee plans		7			6			31			44
Issuance (repayment) of commercial paper (maturity 90 days or less), net		—			125			—			138
Proceeds from debt		331			555			878			1,151
Repayments of debt		(759	)		(1,241	)		(3,143	)		(2,104	)
Other		1			—			(1	)		8
Change in cash from financing activities		(561	)		(955	)		(2,518	)		(1,487	)
Effect of exchange rate changes on cash and cash equivalents		(83	)		(55	)		(100	)		(58	)
Change in cash and cash equivalents		766			(1,295	)		(1,384	)		(2,333	)
Cash and cash equivalents at beginning of period		10,419			12,814			12,569			13,852
Cash and cash equivalents at end of period	$	11,185		$	11,519		$	11,185		$	11,519

USE OF NON-GAAP FINANCIAL MEASURES

Dell uses non-GAAP financial measures to supplement the financial information presented on a GAAP basis. Dell believes that excluding certain items from Dell’s GAAP results allows management to better understand Dell’s consolidated financial performance from period to period and in relationship to the operating results of our segments, as management does not believe that the excluded items are reflective of Dell’s underlying operating performance. Dell also believes that excluding certain items from Dell’s GAAP results allows management to better project Dell’s future consolidated financial performance because forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, Dell believes these non-GAAP financial measures will provide investors with useful information to help them evaluate Dell’s operating results by facilitating an enhanced understanding of Dell’s operating performance, and enabling them to make more meaningful period to period comparisons.

The non-GAAP financial measures presented in this report include non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share. These non-GAAP financial measures, as defined by Dell, represent the comparable GAAP measures adjusted to exclude severance and facility action costs and acquisition-related charges, amortization of purchased intangible assets related to acquisitions, costs incurred in Fiscal 2014 related to Dell’s proposed merger, and special retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014 that will be payable in March 2014. Non-GAAP net income and non-GAAP earnings per share also include the aggregate adjustment for income taxes related to the exclusion of the above items. For more information on each of these items and Dell’s reasons for excluding them, see the detail below. In future fiscal periods, Dell may exclude such items and may incur income and expenses similar to these excluded items. Accordingly, the exclusion of these items and other similar items in our non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent, or unusual.

There are limitations to the use of the non-GAAP financial measures presented in this report. Dell’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in Dell’s industry, may calculate the non-GAAP financial measures differently than Dell, limiting the usefulness of those measures for comparative purposes. In addition, items such as amortization of purchased intangible assets represent the loss in value of intangible assets over time. The expense associated with this loss in value is not included in the non-GAAP financial measures and such measures, therefore, do not reflect the full economic effect of such loss. Further, items such as severance and facility actions, acquisition-related costs, and other charges that are excluded from the non-GAAP financial measures can have a material impact on earnings. Dell’s management compensates for the foregoing limitations by relying primarily on GAAP results and using non-GAAP financial measures supplementally or for projections when comparable GAAP financial measures are not available. The non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for gross margin, operating expenses, operating income, net income, and earnings per share prepared in accordance with GAAP, and should be read only in conjunction with financial information presented on a GAAP basis. See below for reconciliations of each non-GAAP financial measure to its most directly comparable GAAP financial measure. We encourage you to review the reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented.

The following is a summary of the costs and other items excluded from the most comparable GAAP financial measures to calculate non-GAAP financial measures:

• Severance and Facility Actions and Acquisition-related Costs - Severance and facility action costs are primarily related to facilities charges, including accelerated depreciation and severance and benefits for employees terminated pursuant to cost synergies related to strategic acquisitions and actions taken as part of a comprehensive review of costs. Acquisition-related charges are expensed as incurred and consist primarily of retention payments, integration costs, and other costs. Retention payments include stock-based compensation and cash incentives awarded to employees, which are recognized over the vesting period. Integration costs primarily include IT costs related to the integration of IT systems and processes, costs related to the integration of employees, consulting expenses, and for acquisitions made prior to Fiscal 2013, costs related to full-time employees who were working on the integration. Severance and facility actions and acquisition-related charges are inconsistent in amount and are significantly impacted by the timing and nature of these events. Therefore, although Dell may incur these types of expenses in the future, it believes that eliminating these charges for purposes of calculating the non-GAAP financial measures presented below facilitates a more meaningful evaluation of Dell’s current operating performance and comparisons to Dell’s past operating performance.

• Amortization of Intangible Assets - Amortization of purchased intangible assets consists primarily of amortization of customer relationships, acquired technology, non-compete covenants, and trade names purchased in connection with business acquisitions. Dell incurs charges related to the amortization of these intangibles, and those charges are included in Dell’s Condensed Consolidated Financial Statements. Amortization charges for purchased intangible assets are significantly impacted by the timing and magnitude of Dell’s acquisitions. Accordingly, these charges may vary in amount from period to period. Dell excludes these charges for purposes of calculating the non-GAAP financial measures presented below to facilitate a more meaningful evaluation of Dell’s current operating performance and comparisons to Dell’s past operating performance.

• Other Items - Dell also adjusts GAAP financial results for expenses associated with Dell’s proposed merger. These expenses consist of professional fees incurred by Dell in connection with Dell’s proposed merger as well as the reimbursement of transaction-related expenses incurred by certain participants approved by a special committee of the Board of Directors. In addition, Dell adjusts GAAP financial results for special retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014 that will be payable in March 2014. Dell is excluding these expenses for the purpose of calculating the non-GAAP financial measures presented below because Dell believes these items are outside our ordinary course of business and do not contribute to a meaningful evaluation of Dell’s current operating performance or comparisons to Dell’s past operating performance.

• The aggregate adjustment for income taxes is the estimated combined income tax effect for the adjustments mentioned above. The tax effects are determined based on the tax jurisdictions where the above items were incurred.

DELL INC.

Reconciliation of Non-GAAP Financial Measures

(in millions, except per share data and percentages)

(unaudited)

	Three Months Ended									% Growth Rates
	August 2, 2013			May 3, 2013			August 3, 2012			Sequential			Yr. to Yr.
Revenue
GAAP gross margin	$	2,689		$	2,747		$	3,138			(2	%)		(14	%)
Non-GAAP adjustments:
Amortization of intangibles		141			140			109
Severance and facility actions and acquisition-related		8			10			23
Other (a)		1			2			—
Non-GAAP gross margin	$	2,839		$	2,899		$	3,270			(2	%)		(13	%)
GAAP operating expenses	$	2,417		$	2,521		$	2,237			(4	%)		8	%
Non-GAAP adjustments:
Amortization of intangibles		(55	)		(56	)		(41	)
Severance and facility actions and acquisition-related		(79	)		(70	)		(49	)
Other (a)		(46	)		(86	)		—
Non-GAAP operating expenses	$	2,237		$	2,309		$	2,147			(3	%)		4	%
GAAP operating income	$	272		$	226		$	901			20	%		(70	%)
Non-GAAP adjustments:
Amortization of intangibles		196			196			150
Severance and facility actions and acquisition-related		87			80			72
Other (a)		47			88			—
Non-GAAP operating income	$	602		$	590		$	1,123			2	%		(46	%)
GAAP net income	$	204		$	130		$	732			56	%		(72	%)
Non-GAAP adjustments:
Amortization of intangibles		196			196			150
Severance and facility actions and acquisition-related		87			80			72
Other (a)		47			88			—
Aggregate adjustment for income taxes		(101	)		(122	)		(79	)
Non-GAAP net income	$	433		$	372		$	875			16	%		(51	%)
GAAP earnings per share - diluted	$	0.12		$	0.07		$	0.42			71	%		(71	%)
Non-GAAP adjustments per share - diluted		0.13			0.14			0.08
Non-GAAP earnings per share - diluted	$	0.25		$	0.21		$	0.50			19	%		(50	%)
Diluted WAS		1,764			1,761			1,753
Percentage of Total Net Revenue:
GAAP gross margin		18.5	%		19.5	%		21.6	%
Non-GAAP adjustment		1.1	%		1.1	%		1.0	%
Non-GAAP gross margin		19.6	%		20.6	%		22.6	%
GAAP operating expenses		16.6	%		17.9	%		15.4	%
Non-GAAP adjustment		(1.2	%)		(1.5	%)		(0.6	%)
Non-GAAP operating expenses		15.4	%		16.4	%		14.8	%
GAAP operating income		1.9	%		1.6	%		6.2	%
Non-GAAP adjustment		2.2	%		2.6	%		1.6	%
Non-GAAP operating income		4.1	%		4.2	%		7.8	%
GAAP net income		1.4	%		0.9	%		5.1	%
Non-GAAP adjustment		1.6	%		1.7	%		0.9	%
Non-GAAP net income		3.0	%		2.6	%		6.0	%

^(a) Other includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

DELL INC.

Reconciliation of Non-GAAP Financial Measures

(in millions, except per share data and percentages)

(unaudited)

	Six Months Ended						% Growth Rates
	August 2,			August 3,
	2013			2012			Yr. to Yr.
Revenue
GAAP gross margin	$	5,436		$	6,205			(12	%)
Non-GAAP adjustments:
Amortization of intangibles		281			197
Severance and facility actions and acquisition-related		18			35
Other (a)		3			—
Non-GAAP gross margin	$	5,738		$	6,437			(11	%)
GAAP operating expenses	$	4,938		$	4,480			10	%
Non-GAAP adjustments:
Amortization of intangibles		(111	)		(63	)
Severance and facility actions and acquisition-related		(149	)		(113	)
Other (a)		(132	)		—
Non-GAAP operating expenses	$	4,546		$	4,304			6	%
GAAP operating income	$	498		$	1,725			(71	%)
Non-GAAP adjustments:
Amortization of intangibles		392			260
Severance and facility actions and acquisition-related		167			148
Other (a)		135			—
Non-GAAP operating income	$	1,192		$	2,133			(44	%)
GAAP net income	$	334		$	1,367			(76	%)
Non-GAAP adjustments:
Amortization of intangibles		392			260
Severance and facility actions and acquisition-related		167			148
Other (a)		135			—
Aggregate adjustment for income taxes		(223	)		(139	)
Non-GAAP net income	$	805		$	1,636			(51	%)
GAAP earnings per share - diluted	$	0.19		$	0.77			(75	%)
Non-GAAP adjustments per share - diluted		0.27			0.16
Non-GAAP earnings per share - diluted	$	0.46		$	0.93			(51	%)
Diluted WAS		1,763			1,764
Percentage of Total Net Revenue:
GAAP gross margin		19.0	%		21.5	%
Non-GAAP adjustment		1.1	%		0.8	%
Non-GAAP gross margin		20.1	%		22.3	%
GAAP operating expenses		17.3	%		15.5	%
Non-GAAP adjustment		(1.4	%)		(0.6	%)
Non-GAAP operating expenses		15.9	%		14.9	%
GAAP operating income		1.7	%		6.0	%
Non-GAAP adjustment		2.5	%		1.4	%
Non-GAAP operating income		4.2	%		7.4	%
GAAP net income		1.2	%		4.7	%
Non-GAAP adjustment		1.6	%		1.0	%
Non-GAAP net income		2.8	%		5.7	%

^(a) Other includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

Note: Percentage growth rates and ratios are calculated based on underlying data in thousands.

EX-99.2

Exhibit 99.2

Second Quarter Fiscal Year 2014 Results — Additional Insights from Dell’s CFO

This quarter, we are providing the following written summary of highlights and insights as part of our quarterly earnings process. We have also posted additional material on our Investor Relations website. As always, our Investor Relations and Communications teams are available to answer any additional questions you may have.

As we discuss our 2^nd quarter results, please note that all growth percentages refer to year over year progress, and the numbers I will be referring to are non-GAAP financial measures, including non-GAAP gross margin, operating expenses, operating income, net income, and earnings per share.

Total Company Highlights

For the quarter we delivered revenue of $14.5 billion, flat from the prior-year period, but sequentially up 3%. Our revenue growth was driven by the Enterprise Solutions, Services and Software business, which was up 9% to $5.8 billion and now represents 39% of our segment revenue.

Our gross margin was $2.8 billion or 19.6% of revenue, which was down 100 basis points sequentially. We continue to face a challenging competitive environment and, as we have discussed over the past few quarters, we have adjusted our End User Computing and server pricing to more aggressively improve our share position in these businesses. As we have adjusted our pricing, margins have declined, but we continue to make key strategic investments, and we are tightly managing our discretionary operating expenses.

Overall operating expenses were $2.2 billion and represent 15.4% of revenue, down $72 million or 100 basis points sequentially. Of note, there are $125 million in operating expenses related to the pending go-private transaction, acquisition integration costs and work force reductions that are excluded from our non-GAAP results.

Operating income was $602 million or 4.1% of revenue and earnings per share was $0.25, representing a 50% decline.

We generated $1.7 billion in cash flow from operations in the quarter, as we benefited from a 5 day sequential improvement in our cash conversion cycle primarily driven by an increase in days payable. Cash flow also benefitted from sequential revenue growth. On a trailing 12 month basis cash flow from operations was $4.4 billion, up 39%. Our cash and investments balance ended at $13.9 billion.

Enterprise Solutions Group (ESG)

Our ESG business which includes servers, networking, storage, and ESG related peripherals, grew revenue 8% to $3.3 billion. Operating income of $137 million was down 9% to 4.1% of revenue.

Within ESG, our server, networking and enterprise peripheral business delivered revenue of $2.9 billion, increasing 10%. We have grown this business for 9 of the last 10 quarters. While we’ve seen good growth across our server business, our hyper-scale data center server business was particularly strong as we continue to bring market leading solutions to customers. Our networking business grew 19%, representing the 10^th straight quarter of growth for this business. Dell storage revenue declined 7% to $432 million. We continue to develop new and innovative solutions in the storage business like our Dell Compellent solid-state storage solution which delivers customers comparable performance at one-fifth the price of some competitive offerings.

We see customers continuing to migrate to converged enterprise solutions that combine computing, storage and networking resources with infrastructure management into a virtual or physical integrated system. Our early success in this space is exemplified by a recent Technology Business Research (TBR) report that recognized Dell as a “Champion” in the 2013 Vendor Landscape for Converged Systems.

Dell Services

The Services business which includes a broad range of IT and business services, including support and deployment services, infrastructure, cloud, security services, applications and business process services, grew revenue by 2% to $2.1 billion. Operating income for this business was $339 million, up 1% or 15.9% of revenue, down from 16.0% of revenue in the second quarter of last year.

Within Services, support and deployment revenue increased 3% to $1.2 billion. Driving this growth are new solutions such as ProSupport Plus Enterprise Suite, strong attach rates, and good growth in other services tied to our hardware solutions. Infrastructure, cloud and security services grew 5% to $601 million which includes an increase of 19% in our security business. Our Dell SecureWorks team recently launched the Incident Response Resource Center to aid organizations in preparing for, responding to, and recovering from a cyber-security incident. Revenue for our applications and BPO business declined 6%, driven by a divestiture.

Dell Software

Our Software business which includes systems management, security software solutions, and information management delivered revenue of $310 million and an operating loss of $62 million for the quarter.

During the quarter we acquired Enstratius which helps to broaden and improve our cloud capabilities. We also announced the Dell SonicWALL Network Security Appliance (NSA) Series Next-Generation Firewalls (NGFWs). These new solutions offer the same high level of security and capabilities as the carrier and enterprise-class SuperMassive Series and bring differentiated capabilities to our customers.

End User Computing (EUC)

Our EUC business includes desktops including thin client, notebooks including tablets, third-party software, and client-related peripherals. This business reported revenue of $9.1 billion, down 5%. Operating income was $205 million, a decline of 71% at 2.2% of revenue. We continue to see challenged demand in this business and continued market competitiveness, especially in notebooks and in the consumer markets. Our efforts to improve growth have improved our share position at the expense of profitability. According to IDC, Dell was the only vendor in the top 5 to increase share both year over year and sequentially for the past two quarters for worldwide PC units shipped.

Our desktop and thin client business revenue was $3.6 billion, up 1%. The trajectory of the desktop business continues to improve as we maintain a strong position in the traditional desktop space and are seeing good traction with our all-in-one and thin client businesses. We are launching new and innovative designs like project Ophelia which gives users a secure, virtual PC through a device the size of a USB thumb drive. Mobility revenue of $3.6 billion was down 10% as demand in this space continues to be pressured by customers diverting spending to alternative mobile solutions. We introduced our innovative new line of Latitude ultrabooks which include the Haswell chip set from Intel and unparalleled security features. Our third party software and EUC peripherals delivered revenue of $2 billion, down 5%.

Closing Comments:

We remain fully committed to execute our strategy to provide end-to-end solutions that accelerate results for our customers. While the environment continues to be challenging we remain focused and dedicated to this objective, and are encouraged by the customer response to our broadened set of solutions.

The quarterly webdeck for our second quarter results is now posted in the investor relations section at dell.com and you will find additional information in our press release and Form 8-K filed today with the SEC. I encourage you to review this and related materials for additional perspective.

In the tables below you will find a reconciliation of each historical non-GAAP financial measure to the most directly comparable GAAP financial measure under the heading “Reconciliation of non-GAAP Financial Measures.” Please review the reconciliation in conjunction with the presentation of these non-GAAP financial measures.

Special Note on Forward Looking Statements:

Statements in this document that relate to future results and events are forward-looking statements and are based on Dell’s current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including: effects of Dell’s proposed merger; intense competition; Dell’s reliance on third-party suppliers for product components, including reliance on several single-sourced or limited-sourced suppliers; Dell’s ability to achieve favorable pricing from its vendors; weak global economic

conditions and instability in financial markets; Dell’s ability to manage effectively the change involved in implementing strategic initiatives; successful implementation of Dell’s acquisition strategy; Dell’s cost-efficiency measures; Dell’s ability to effectively manage periodic product and services transitions; Dell’s ability to deliver consistent quality products and services; Dell’s ability to generate substantial non-U.S. net revenue; Dell’s product, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell’s sales channel partners; access to the capital markets by Dell or its customers; weak economic conditions and additional regulation affecting our financial services activities; counterparty default; customer terminations of or pricing changes in services contracts, or Dell’s failure to perform as it anticipates at the time it enters into services contracts; loss of government contracts; Dell’s ability to obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; infrastructure disruptions; cyber-attacks or other data security breaches; Dell’s ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; Dell’s ability to attract, retain, and motivate key personnel; Dell’s ability to maintain strong internal controls; changing environmental and safety laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; and other risks and uncertainties discussed in Dell’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended February 1, 2013, as amended on June 3, 2013. Factors or risks that could cause Dell’s actual results to differ materially from the results it anticipates also include: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (2) the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; (3) the failure to obtain the necessary financing arrangements set forth in the debt and equity commitment letters delivered pursuant to the merger agreement; (4) risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction; and (5) the effect of the announcement of the proposed merger on the Company’s relationships with its customers, operating results and business generally. Dell assumes no obligation to update its forward-looking statements.

DELL INC.

Reconciliation of Non-GAAP Financial Measures

(in millions, except per share data and percentages)

(unaudited)

($ millions, except per share data)	2Q’12			3Q’12			4Q’12			FY12			1Q’13			2Q’13			3Q’13			4Q’13			FY13			1Q’14			2Q’14
GAAP Net Income		890			893			764			3,492			635			732			475			530			2,372			130			204
GAAP EPS		0.48			0.49			0.43			1.88			0.36			0.42			0.27			0.30			1.35			0.07			0.12
Non-GAAP adjustments:
Amortization of intangibles		95			100			104			391			110			150			165			188			613			196			196
Severance & facility actions and Acquisition-related		87			46			108			313			76			72			132			68			348			80			87
Other1		0			0			0			0			0			0			0			0			0			88			47
Aggregate Tax-adjustments		(66	)		(56	)		(63	)		(244	)		(60	)		(79	)		(93	)		(84	)		(316	)		(122	)		(101	)
Total adjustments to Net Income		116			90			149			460			126			143			204			172			645			242			229
Total adjustments to EPS - diluted		0.06			0.05			0.08			0.25			0.07			0.08			0.12			0.10			0.37			0.14			0.13
Non-GAAP Net Income		1,006			983			913			3,952			761			875			679			702			3,017			372			433
Non-GAAP EPS		0.54			0.54			0.51			2.13			0.43			0.50			0.39			0.40			1.72			0.21			0.25
Percentage of Total Net Revenue:
GAAP Net Income		5.7	%		5.8	%		4.8	%		5.6	%		4.4	%		5.1	%		3.5	%		3.7	%		4.2	%		0.9	%		1.4	%
Non-GAAP adjustments		0.7	%		0.6	%		0.9	%		0.8	%		0.9	%		0.9	%		1.4	%		1.2	%		1.1	%		1.7	%		1.6	%
Non-GAAP Net Income		6.4	%		6.4	%		5.7	%		6.4	%		5.3	%		6.0	%		4.9	%		4.9	%		5.3	%		2.6	%		3.0	%

¹  Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

($ millions)	2Q’12			3Q’12			4Q’12			FY12			1Q’13			2Q’13			3Q’13			4Q’13			FY13			1Q’14			2Q’14
GAAP Gross Margin		3,525			3,469			3,385			13,811			3,067			3,138			2,872			3,109			12,186			2,747			2,689
Non-GAAP adjustments:
Amortization of intangibles		74			77			83			305			88			109			120			138			455			140			141
Severance & facility actions and Acquisition-related		26			0			15			49			12			23			21			11			67			10			8
Other1		0			0			0			0			0			0			0			0			0			2			1
Total adjustments to Gross Margin		100			77			98			354			100			132			141			149			522			152			150
Non-GAAP Gross Margin		3,625			3,546			3,483			14,165			3,167			3,270			3,013			3,258			12,708			2,899			2,839
Percentage of Total Net Revenue:
GAAP Gross Margin		22.5	%		22.6	%		21.1	%		22.3	%		21.3	%		21.6	%		20.9	%		21.7	%		21.4	%		19.5	%		18.5	%
Non-GAAP adjustments		0.7	%		0.5	%		0.6	%		0.5	%		0.7	%		1.0	%		1.1	%		1.1	%		0.9	%		1.1	%		1.1	%
Non-GAAP Gross Margin		23.2	%		23.1	%		21.7	%		22.8	%		22.0	%		22.6	%		22.0	%		22.8	%		22.3	%		20.6	%		19.6	%
1            Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.
($ millions)	2Q’12			3Q’12			4Q’12			FY12			1Q’13			2Q’13			3Q’13			4Q’13			FY13			1Q’14			2Q’14
GAAP operating expenses		2,379			2,327			2,454			9,380			2,243			2,237			2,283			2,411			9,174			2,521			2,417
Non-GAAP adjustments:
Amortization of intangibles		(21	)		(23	)		(21	)		(86	)		(22	)		(41	)		(45	)		(50	)		(158	)		(56	)		(55	)
Severance & facility actions and Acquisition-related		(61	)		(46	)		(93	)		(264	)		(64	)		(49	)		(111	)		(57	)		(281	)		(70	)		(79	)
Other1		0			0			0			0			0			0			0			0			0			(86	)		(46	)
Total adjustments to opex		(82	)		(69	)		(114	)		(350	)		(86	)		(90	)		(156	)		(107	)		(439	)		(212	)		(180	)
Non-GAAP operating expenses		2,297			2,258			2,340			9,030			2,157			2,147			2,127			2,304			8,735			2,309			2,237
Percentage of Total Net Revenue:
GAAP operating expenses		15.2	%		15.2	%		15.3	%		15.2	%		15.6	%		15.4	%		16.6	%		16.8	%		16.1	%		17.9	%		16.6	%
Non-GAAP adjustments		-0.5	%		-0.5	%		-0.7	%		-0.7	%		-0.6	%		-0.6	%		-1.1	%		-0.7	%		-0.8	%		-1.5	%		-1.2	%
Non-GAAP operating expenses		14.7	%		14.7	%		14.6	%		14.5	%		15.0	%		14.8	%		15.5	%		16.1	%		15.3	%		16.4	%		15.4	%
1            Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.
($ millions)	2Q’12			3Q’12			4Q’12			FY12			1Q’13			2Q’13			3Q’13			4Q’13			FY13			1Q’14			2Q’14
GAAP operating income		1,146			1,142			931			4,431			824			901			589			698			3,012			226			272
Non-GAAP adjustments:
Amortization of intangibles		95			100			104			391			110			150			165			188			613			196			196
Severance & facility actions and Acquisition-related		87			46			108			313			76			72			132			68			348			80			87
Other1		0			0			0			0			0			0			0			0			0			88			47
Total adjustments to opinc		182			146			212			704			186			222			297			256			961			364			330
Non-GAAP operating income		1,328			1,288			1,143			5,135			1,010			1,123			886			954			3,973			590			602
Percentage of Total Net Revenue:
GAAP operating income		7.3	%		7.4	%		5.8	%		7.1	%		5.7	%		6.2	%		4.3	%		4.9	%		5.3	%		1.6	%		1.9	%
Non-GAAP adjustments		1.2	%		1.0	%		1.3	%		1.2	%		1.3	%		1.6	%		2.2	%		1.8	%		1.7	%		2.6	%		2.2	%
Non-GAAP operating income		8.5	%		8.4	%		7.1	%		8.3	%		7.0	%		7.8	%		6.5	%		6.7	%		7.0	%		4.2	%		4.1	%
1            Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

($ millions)	2Q’12			3Q’12			4Q’12			1Q’13			2Q’13			3Q’13			4Q’13			1Q’14			2Q’14
Net TTM Free Cash Flow
Cash flow from operations		5,235			5,173			5,527			4,924			3,187			3,679			3,283			3,382			4,423
Capital expenditures		(549	)		(670	)		(675	)		(680	)		(641	)		(548	)		(513	)		(529	)		(573	)
Financing receivables		375			412			372			322			282			261			193			135			185
Net TTM Free Cash Flow		5,061			4,915			5,224			4,566			2,828			3,392			2,963			2,988			4,035
Net Free Cash Flow
Cash flow from operations		2,374			851			1,837			(138	)		637			1,343			1,441			(39	)		1,678
Capital expenditures		(159	)		(214	)		(165	)		(142	)		(120	)		(121	)		(130	)		(158	)		(164	)
Financing receivables		100			83			210			(71	)		60			62			142			(129	)		110
Net Free Cash Flow		2,315			720			1,882			(351	)		577			1,284			1,453			(326	)		1,624

EX-99.3

Exhibit 99.3

Dell 2Q FY’14 Performance Review

August 15, 2013

Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Forward-Looking Statements

Non-GAAP Financial Measures:

This presentation includes information about non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP net income, and non-GAAP earnings per share (collectively the “non-GAAP financial measures”), which are not measurements of financial performance prepared in accordance with U.S. generally accepted accounting principles. We have provided a reconciliation of the historical non-GAAP financial measures and of free cash flow, which is also a non-GAAP measure, to the most directly comparable GAAP measures in the slides captioned “Supplemental Non-GAAP Measures.” A detailed discussion of our reasons for including the non-GAAP financial measures and the limitations associated with those measures is presented in the exhibit to our Current Report on Form 8-K filed August 15, 2013. We encourage investors to review the historical reconciliation and the non-GAAP discussion in conjunction with our presentation of the non-GAAP financial measures.

Special Note on Forward Looking Statements:

Statements in this material that relate to future results and events are forward-looking statements and are based on Dell’s current expectations. In some cases, you can identify these statements by such forward-looking words as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “confidence,” “may,” “plan,” “potential,” “should,” “will” and “would,” or similar expressions. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors, including: effects of Dell’s proposed merger; intense competition; Dell’s reliance on third-party suppliers for product components, including reliance on several single-sourced or limited-sourced suppliers; Dell’s ability to achieve favorable pricing from its vendors; weak global economic conditions and instability in financial markets; Dell’s ability to manage effectively the change involved in implementing strategic initiatives; successful implementation of Dell’s acquisition strategy; Dell’s cost-efficiency measures; Dell’s ability to effectively manage periodic product and services transitions; Dell’s ability to deliver consistent quality products and services; Dell’s ability to generate substantial non-U.S. net revenue; Dell’s product, customer, and geographic sales mix, and seasonal sales trends; the performance of Dell’s sales channel partners; access to the capital markets by Dell or its customers; weak economic conditions and additional regulation affecting Dell’s financial services activities; counterparty default; customer terminations of or pricing changes in services contracts, or Dell’s failure to perform as it anticipates at the time it enters into services contracts; loss of government contracts; Dell’s ability to obtain licenses to intellectual property developed by others on commercially reasonable and competitive terms; infrastructure disruptions; cyber-attacks or other data security breaches; Dell’s ability to hedge effectively its exposure to fluctuations in foreign currency exchange rates and interest rates; expiration of tax holidays or favorable tax rate structures, or unfavorable outcomes in tax audits and other compliance matters; impairment of portfolio investments; unfavorable results of legal proceedings; Dell’s ability to attract, retain, and motivate key personnel; Dell’s ability to maintain strong internal controls; changing environmental and safety laws; the effect of armed hostilities, terrorism, natural disasters, and public health issues; and other risks and uncertainties discussed in Dell’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended February 1, 2013, as amended on June 3, 2013. Factors or risks that could cause Dell’s actual results to differ materially from the results it anticipates also include: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; (2) the inability to complete the proposed merger due to the failure to obtain stockholder approval for the proposed merger or the failure to satisfy other conditions to completion of the proposed merger, including that a governmental entity may prohibit, delay or refuse to grant approval for the consummation of the transaction; (3) the failure to obtain the necessary financing arrangements set forth in the debt and equity commitment letters delivered pursuant to the merger agreement; (4) risks related to disruption of management’s attention from the Company’s ongoing business operations due to the transaction; and (5) the effect of the announcement of the proposed merger on the Company’s relationships with its customers, operating results and business generally. Dell assumes no obligation to update its forward-looking statements.

2 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Dell 2Q FY’14

2Q Earnings Review

3 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Consolidated GAAP Results

Consolidated GAAP P&L1

$ in Millions—except Units and EPS

Y/Y Seq

2Q’13 1Q’14 2Q’14 Growth Growth

Units (thousands) 10,393 9,644 10,307 —1% 7%

Revenues 14,483 14,074 14,514 0% 3%

Gross Margin 3,138 2,747 2,689 —14% —2%

GM % of revenue 21.6% 19.5% 18.5% —310bps —100bps

SG&A Operating Expenses 1,976 2,208 2,097 6% —5%

SG&A Opex % of revenue 13.6% 15.7% 14.4% 80bps —130bps

R&D Operating Expenses 261 313 320 23% 2%

R&D Opex % of revenue 1.8% 2.2% 2.2% 40bps 0bps

Operating Expenses 2,237 2,521 2,417 8% —4%

Opex % of revenue 15.4% 17.9% 16.6% 120bps —130bps

Operating Income 901 226 272 —70% 20%

OpInc % of revenue 6.2% 1.6% 1.9% —430bps 30bps

Income Tax 106 28 15 —86% —46%

Effective Tax Rate % 12.7% 17.6% 6.9% —580bps —1070bps

Net Income 732 130 204 —72% 56%

NI % of revenue 5.1% 0.9% 1.4% —370bps 50bps

Diluted EPS $0.42 $0.07 $0.12 —71% 71%

1Percentages and ratios are calculated based on underlying data

4 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Highlights

Our differentiated strategy:

The leading provider of end-to-end scalable solutions Growth refers to year-over-year

Efficient, Superior • Enterprise Solutions, Services and Software

Practical revenue up +9% to $5.8B

innovation simple and relationship

affordable model • According to IDC, Dell was the only vendor in

top 5 to increase market share both Y/Y and

Our customers’ imperatives: sequentially for the past two quarters for

worldwide PC units shipped

• For the 3rd year in a row Dell was ranked the

TRANSFORM CONNECT INFORM PROTECT #1 Healthcare IT services provider by Gartner

• We continue to add and invest in additional

Our end-to-end portfolio: strategic capabilities

Integrating & Simplifying & Enabling with

Connecting optimizing securing next-

END USERS the through generation

ENTERPRISE SOFTWARE SERVICES

5 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Non-GAAP Summary

Delivered revenue of $14.5B, flat Y/Y

Gross margin was $2.8B at 19.6% of revenue, down -100 basis points sequentially

Operating expenses were $2.2B at 15.4% of revenue, down -100 basis points sequentially

Operating income was $602M or 4.1% of revenue

Tax rate was 21.1%

Earnings per share of $0.25, down -50% Y/Y

Cash flow from operations was $1.7B; on a trailing twelve month basis, cash flow from operations was $4.4B, up +39% Y/Y

6 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Consolidated Non-GAAP Results

Revenue Detail

Consolidated P&L1

$ in Millions—except Units and EPS

2Q’13 1Q’14 2Q’14 Y/Y Seq • Delivered revenue of $14.5B, flat Y/Y

Growth Growth

Units (thousands) 10,393 9,644 10,307 —1% 7% • Revenue dynamics:

Revenues 14,483 14,074 14,514 0% 3% – All operating segments except End User

Gross Margin 3,270 2,899 2,839 —13% —2% Computing (EUC) experienced Y/Y

GM % of revenue 22.6% 20.6% 19.6% —300bps —100bps

SG&A Operating Expenses 1,888 2,000 1,924 2% —4% growth

SG&A Opex % of revenue 13.0% 14.2% 13.3% 30bps —90bps – Enterprise Solutions Group up +8% Y/Y

R&D Operating Expenses 259 309 313 21% 1% to $3.3B

R&D Opex % of revenue 1.8% 2.2% 2.2% 40bps 0bps

Operating Expenses 2,147 2,309 2,237 4% —3% – Services revenue +2% Y/Y, driven by

Opex % of revenue 14.8% 16.4% 15.4% 60bps —100bps support & deployment

Operating Income 1,123 590 602 —46% 2% – Americas and APJ revenue growth Y/Y,

OpInc % of revenue 7.8% 4.2% 4.1% —370bps —10bps +1% and +2%, respectively

Income Tax 185 150 116 —37% —23%

Effective Tax Rate % 17.5% 28.7% 21.1% 360bps—760bps

Net Income 875 372 433 —51% 16%

NI % of revenue 6.0% 2.6% 3.0% —300bps 40bps

Diluted EPS $0.50 $0.21 $0.25 —50% 19%

1Percentages and ratios are calculated based on underlying data

7 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Consolidated Non-GAAP Results

Gross Margin Detail

Consolidated P&L1

$ in Millions—except Units and EPS

2Q’13 1Q’14 2Q’14 Y/Y Seq • Gross margin was $2.8B at 19.6% of

Growth Growth

Units (thousands) 10,393 9,644 10,307 —1% 7% revenue, down -100 bps sequentially

Revenues 14,483 14,074 14,514 0% 3% • Gross Margin dynamics:

Gross Margin 3,270 2,899 2,839 —13% —2%

GM % of revenue 22.6% 20.6% 19.6% —300bps —100bps – Adjusted EUC and server pricing to

SG&A Operating Expenses 1,888 2,000 1,924 2% —4% improve our share position in these

SG&A Opex % of revenue 13.0% 14.2% 13.3% 30bps —90bps businesses

R&D Operating Expenses 259 309 313 21% 1%

R&D Opex % of revenue 1.8% 2.2% 2.2% 40bps 0bps

Operating Expenses 2,147 2,309 2,237 4% —3%

Opex % of revenue 14.8% 16.4% 15.4% 60bps —100bps

Operating Income 1,123 590 602 —46% 2%

OpInc % of revenue 7.8% 4.2% 4.1% —370bps —10bps

Income Tax 185 150 116 —37% —23%

Effective Tax Rate % 17.5% 28.7% 21.1% 360bps—760bps

Net Income 875 372 433 —51% 16%

NI % of revenue 6.0% 2.6% 3.0% —300bps 40bps

Diluted EPS $0.50 $0.21 $0.25 —50% 19%

1Percentages and ratios are calculated based on underlying data

8 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Consolidated Non-GAAP Results

Operating Expense and Operating Income Detail

Consolidated P&L1

$ in Millions—except Units and EPS

2Q’13 1Q’14 2Q’14 Y/Y Seq • Operating expenses were $2.2B at 15.4%

Growth Growth

Units (thousands) 10,393 9,644 10,307 —1% 7% of revenue, down -100 bps sequentially

Revenues 14,483 14,074 14,514 0% 3% • Operating expenses dynamics:

Gross Margin 3,270 2,899 2,839 —13% —2%

GM % of revenue 22.6% 20.6% 19.6% —300bps —100bps – $125M in operating expenses related to

SG&A Operating Expenses 1,888 2,000 1,924 2% —4% pending go-private transaction,

SG&A Opex % of revenue 13.0% 14.2% 13.3% 30bps —90bps acquisition integration costs, and work

R&D Operating Expenses 259 309 313 21% 1% force reductions that are excluded from

R&D Opex % of revenue 1.8% 2.2% 2.2% 40bps 0bps our non-GAAP results

Operating Expenses 2,147 2,309 2,237 4% —3% – R&D was up +40bps Y/Y to 2.2% of

Opex % of revenue 14.8% 16.4% 15.4% 60bps —100bps revenue and SG&A was up +30 bps Y/Y

Operating Income 1,123 590 602 —46% 2% to 13.3% of revenue

OpInc % of revenue 7.8% 4.2% 4.1% —370bps —10bps

Income Tax 185 150 116 —37% —23% • Operating income was $602M, or 4.1% of

Effective Tax Rate % 17.5% 28.7% 21.1% 360bps—760bps revenue

Net Income 875 372 433 —51% 16%

NI % of revenue 6.0% 2.6% 3.0% —300bps 40bps

Diluted EPS $0.50 $0.21 $0.25 —50% 19%

1Percentages and ratios are calculated based on underlying data

9 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Consolidated Non-GAAP Results

Interest & Other Income, Taxes, and Diluted Weighted Average Shares Detail

Consolidated P&L1

$ in Millions—except Units and EPS

Y/Y Seq • Interest & other income of -$53M

2Q’13 1Q’14 2Q’14

Growth Growth

Units (thousands) 10,393 9,644 10,307 -1% 7% • Tax rate of 21.1%

Revenues 14,483 14,074 14,514 0% 3% • Diluted weighted average shares up +11M

Gross Margin 3,270 2,899 2,839 -13% -2%

GM % of revenue 22.6% 20.6% 19.6% -300bps -100bps Y/Y, up +1% Y/Y

SG&A Operating Expenses 1,888 2,000 1,924 2% -4% • EPS down -50% Y/Y to $0.25

SG&A Opex % of revenue 13.0% 14.2% 13.3% 30bps -90bps

R&D Operating Expenses 259 309 313 21% 1%

R&D Opex % of revenue 1.8% 2.2% 2.2% 40bps 0bps

Operating Expenses 2,147 2,309 2,237 4% -3%

Opex % of revenue 14.8% 16.4% 15.4% 60bps -100bps

Operating Income 1,123 590 602 -46% 2%

OpInc % of revenue 7.8% 4.2% 4.1% -370bps -10bps

Income Tax 185 150 116 -37% -23%

Effective Tax Rate % 17.5% 28.7% 21.1% 360bps -760bps

Net Income 875 372 433 -51% 16%

NI % of revenue 6.0% 2.6% 3.0% -300bps 40bps

Diluted EPS $0.50 $0.21 $0.25 -50% 19%

1Percentages and ratios are calculated based on underlying data

10 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Cash Flow Management

Cash Flow from Operations1 • Cash flow from operations was $1.7B

• Cash and investments balance was $13.9B

$4.4B

$3.2B $3.7B $3.3B $3.4B • 5 day sequential improvement in cash

conversion cycle primarily driven by an increase

in days payable

– Days sales outstanding flat sequentially to 45 days

2Q’13 3Q ‘13 4Q’13 1Q’14 2Q’14 – Days sales of inventory flat sequentially at 11 days

– Days payables outstanding up +5 days sequentially

to 92 days

Cash Conversion Cycle (CCC)

2Q ‘1313 3Q ‘1313 4Q ‘1313 1Q ‘14 2Q ‘1414

CCC -30 -32 -31

-36 -36

1Trailing Twelve Months

11 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Product & Services Segment Summary

Product & Services Segment P&L1

$ in Millions

Enterprise End User

Solutions Services Software Computing

Group

Revenues 3,324 2,136 310 9,139

Y/Y Growth, % 8% 2% NM —5%

Q/Q Growth, % 7% 1% 5% 2%

Operating Income 137 339 (62) 205

Operating Income, % 4.1% 15.9% —20.1% 2.2%

Y/Y Growth, bps —80bps —10bps NM —510bps

Q/Q Growth, bps —30bps —170bps 860bps —30bps

1Reflects business unit results; reference IR tables for reconciliation with consolidated results

12 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Enterprise Solutions Group

Revenue & Operating Income Revenue Mix

4.9% OpInc 4.4% OpInc 4.1% OpInc 13%

$3.1B $3.1B $3.3B 87%

2Q’13 1Q’14 2Q’14 Servers, Networking & Peripherals Storage

Enterprise Solutions Group P&L

$ in Millions 2Q’13 1Q’14 2Q’14 • Revenue up +8% Y/Y to $3.3B

Revenues 3,086 3,093 3,324 • Operating income of $137M down -80bps Y/Y

Y/Y Growth, % 10% 8%

Q/Q Growth, % 7% to 4.1% of revenue

Operating Income 151 136 137

Operating Income, % 4.9% 4.4% 4.1%

Y/Y Growth, bps 160 bps —80bps

Q/Q Growth, bps —30bps

13 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Enterprise Solutions Group Detail

Servers, Networking & Peripherals Storage

(Revenue $ in Millions) (Revenue $ in Millions)

2622, 2,669 2,892

464 424 432

2Q’13 1Q’14 2Q’14 2Q’13 1Q’14 2Q’14

Revenue of $2.9B, up +10% Y/Y; have grown this Revenue of $432M, down -7% Y/Y

business for 9 out of the last 10 quarters • Continue to develop new and innovative

Server business performed well, particularly in solutions in this business

hyper scale data center solutions

Networking up +19% Y/Y; 10th straight quarter of

Y/Y growth

14 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Services

Revenue & Operating Income Deferred Services Revenue

7,576 7,402 7,441

16.0% OpInc 17.6% OpInc 15.9% OpInc 378 420 437

7,198 6,982 7,004

$2.1B $2.1B $2.1B

2Q’13 1Q’14 2Q’14

Deferred Extended Other Deferred

2Q’13 1Q’14 2Q’14 Warranty Revenue Services Revenue

Services P&L

$ in Millions 2Q’13 1Q’14 2Q’14 • Revenue up +2% Y/Y to $2.1B

Revenues 2,097 2,109 2,136

Y/Y Growth, % 2% 2% • Operating income of $339M down -10bps Y/Y

Q/Q Growth, % 1% to 15.9% of revenue

Operating Income 336 370 339

Operating Income, % 16.0% 17.6% 15.9%

Y/Y Growth, bps 130 bps —10bps

Q/Q Growth, bps —170bps

15 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Services Detail

Support & Deployment Infrastructure, Cloud Applications & BPO

(Revenue $ in Millions) & Securit y (Revenue $ in Millions)

1,192 1,202 1,223 (Revenue $ in Millions)

574 612 601

331 295 312

2Q’13 1Q’14 2Q’14 2Q’13 1Q’14 2Q’14 2Q’13 1Q’14 2Q’14

Revenue up +3% Y/Y to $1.2B Revenue up +5% Y/Y to Revenue down -6% Y/Y to

Y/Y growth in ProSupport attach $601M $312M, driven by a divestiture

rates and other services tied to our • Security business up +19%

hardware offerings Y/Y

16 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Software

Revenue & Operating Income • Revenue of $310M; Deferred software revenue

balance of $685M

-28.7% OpInc -20.1% OpInc • Company continues to make investments, seen

by +76% Y/Y growth in Security Software

products

-12.0% OpInc $295M $310M

• Operating loss of $62M or -20.1% of revenue

$95M

2Q’13 1Q’14 2Q’14

Software P&L

$ in Millions 2Q’13 1Q’14 2Q’14

Revenues 95 295 310

Y/Y Growth, % NM NM

Q/Q Growth, % 5%

Operating Income -11 —85 -62

Operating Income, % -12.0% -28.7% -20.1%

Y/Y Growth, bps NM NM

Q/Q Growth, bps 860bps

17 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 End User Computing

Revenue & Operating Income Revenue Mix

7.3% OpInc 2.5% OpInc 2.2% OpInc

22%

39%

$9.6B $8.9B $9.1B

39%

2Q’13 1Q’14 2Q’14 Deskto ps & Thin Client Mobility S&P

End User Computing P&L • Revenue down -5% Y/Y to $9.1B; continued

$ in Millions 2Q’13 1Q’14 2Q’14 market competitiveness

Revenues 9,571 8,920 9,139

Y/Y Growth, % -9% -5% • Operating income of $205M, down -510bps Y/Y

Q/Q Growth, % 2% to 2.2% of revenue

Operating Income 696 224 205

Operating Income, % 7.3% 2.5% 2.2%

Y/Y Growth, bps —400 bps —510bps

Q/Q Growth, bps —30bps

18 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 End User Computing Detail

Desktops & Thin Client Mobility Software & Peripherals

(Revenue $ in Millions) (Revenue $ in Millions) (Revenue $ in Millions)

3,504 3,273 3,550 3,946 3,618 3,569

2,12 2,029 2,020

2Q’13 1Q’14 2Q’14 2Q’13 1Q’14 2Q’14 2Q’13 1Q’14 2Q’14

Revenue up +1% Y/Y to $3.6B Revenue down -10% Y/Y to Revenue down -5% Y/Y to

Maintaining strong position in $3.6B; demand pressured by $2.0B

traditional desktops, good customers diverting spending • Y/Y growth in displays and

traction in all-in-one and thin to alternative mobile solutions other electronics

client businesses

19 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

2Q FY’14 Regional and BRIC Results

Regional Dynamics

Regional Revenue • Americas revenue was up +1% Y/Y

$ in Millions • EMEA revenue was down -4% Y/Y

2Q’13 3Q’13 4Q’13 1Q’14 2Q’14

Americas • APJ revenue was up +2% Y/Y

Sequential Growth, % 6% —5% —1% 2% 6% BRIC Dynamics

Y/Y Growth, % -6% —9% -10% 1% 1% • BRIC countries revenue up +1% Y/Y

EMEA

Sequential Growth, % -4% —8% 17% —5% -6% – Brazil up +7% Y/Y

Y/Y Growth, % —7% —15% —14% —2% —4% – India up +6% Y/Y

APJ – China flat Y/Y

Sequential Growth, % -8% —4% 8% -7% 6% – Russia down -33% Y/Y

Y/Y Growth, % -12% —11% -9% —12% 2%

20 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

’s commitment to our planet, our communities and our people

Our Planet Our Communities & Our People

Dell’s FY13 Corporate Responsibility Summary report was Dell named the 2013 Microsoft YouthSpark published in June Citizenship Partner of the Year In FY13 we recycled more than 170 million pounds The Dell Social Innovation Challenge awarded (77,497,028 kg) of electronics globally, putting us past the $100K+ in prize money with winning students 1 billion pound takeback goal we set in 2008 from India, Bangladesh, Germany, Mexico and the Dell commits to packaging that is 100% recyclable or US compostable and 100% sustainably sourced by 2020 Launched two university level challenges to spur Dell provided capability building to suppliers who had not innovation and social change previously reported emissions through the Carbon Responded to disasters in China, India, Canada Disclosure Project and helped them to publically report and the US matching over $80K in employee for the e first st time contributions, giving iving $315K in corporate

Dell recently joined the SPLC, which is a group of leaders donations from government, industry, academia, standards organizations and NGOs joining forces to standardize how sustainable purchasing is defined, guided, measured and rewarded

21 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Dell 2Q FY14

Supplemental Non-GAAP Measures

22 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Supplemental Non-GAAP Measures

($ millions, except per share data) 2Q’12 3Q’12 4Q’12 FY12 1Q’13 2Q’13 3Q’13 4Q’13 FY13 1Q’14 2Q’14

GAAP Net Income 890 893 764 3,492 635 732 475 530 2,372 130 204

GAAP EPS 0.48 0.49 0.43 1.88 0.36 0.42 0.27 0.30 1.35 0.07 0.12

Non- GAAP adjustments:

Amortization of intangibles 95 100 104 391 110 150 165 188 613 196 196

Severance & facility actions and

Acquisition- related 87 46 108 313 76 72 132 68 348 80 87

Other1 0 0 0 0 0 0 0 0 0 88 47

Aggregate Tax- adjustments (66) (56) (63) (244) (60) (79) (93) (84) (316) (122) (101)

Total adjustments to Net Income 116 90 149 460 126 143 204 172 645 242 229

Total adjustments to EPS—diluted 0.06 0.05 0.08 0.25 0.07 0.08 0.12 0.10 0.37 0.14 0.13

Non- GAAP Net Income 1,006 983 913 3,952 761 875 679 702 3,017 372 433

Non- GAAP EPS 0.54 0.54 0.51 2.13 0.43 0.50 0.39 0.40 1.72 0.21 0.25

Percentage of Total Net Revenue:

GAAP Net Income 5.7% 5.8% 4.8% 5.6% 4.4% 5.1% 3.5% 3.7% 4.2% 0.9% 1.4%

Non- GAAP adjustments 0.7% 0.6% 0.9% 0.8% 0.9% 0.9% 1.4% 1.2% 1.1% 1.7% 1.6%

Non- GAAP Net Income 6.4% 6.4% 5.7% 6.4% 5.3% 6.0% 4.9% 4.9% 5.3% 2.6% 3.0%

1 Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

23 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Supplemental Non-GAAP Measures

($ millions) 2Q’12 3Q’12 4Q’12 FY12 1Q’13 2Q’13 3Q’13 4Q’13 FY13 1Q’14 2Q’14

GAAP Gross Margin 3,525 3,469 3,385 13,811 3,067 3,138 2,872 3,109 12,186 2,747 2,689

Non- GAAP adjustments:

Amortization of intangibles 74 77 83 305 88 109 120 138 455 140 141

Severance & facility actions and

Acquisition- related 26 0 15 49 12 23 21 11 67 10 8

Other1 0 0 0 0 0 0 0 0 0 2 1

Total adjustments to Gross Margin 100 77 98 354 100 132 141 149 522 152 150

Non- GAAP Gross Margin 3,625 3,546 3,483 14,165 3,167 3,270 3,013 3,258 12,708 2,899 2,839

Percentage of Total Net Revenue:

GAAP Gross Margin 22.5% 22.6% 21.1% 22.3% 21.3% 21.6% 20.9% 21.7% 21.4% 19.5% 18.5%

Non- GAAP adjustments 0.7% 0.5% 0.6% 0.5% 0.7% 1.0% 1.1% 1.1% 0.9% 1.1% 1.1%

Non- GAAP Gross Margin 23.2% 23.1% 21.7% 22.8% 22.0% 22.6% 22.0% 22.8% 22.3% 20.6% 19.6%

1 Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

24 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Supplemental Non-GAAP Measures

($ millions) 2Q’12 3Q’12 4Q’12 FY12 1Q’13 2Q’13 3Q’13 4Q’13 FY13 1Q’14 2Q’14

GAAP operating expenses 2,379 2,327 2,454 9,380 2,243 2,237 2,283 2,411 9,174 2,521 2,417

Non- GAAP adjustments:

Amortization of intangibles (21) (23) (21) (86) (22) (41) (45) (50) (158) (56) (55)

Severance & facility actions and

Acquisition- related (61) (46) (93) (264) (64) (49) (111) (57) (281) (70) (79)

Other1 0 0 0 0 0 0 0 0 0 (86) (46)

Total adjustments to opex (82) (69) (114) (350) (86) (90) (156) (107) (439) (212) (180)

Non- GAAP operating expenses 2,297 2,258 2,340 9,030 2,157 2,147 2,127 2,304 8,735 2,309 2,237

Percentage of Total Net Revenue:

GAAP operating expenses 15.2% 15.2% 15.3% 15.2% 15.6% 15.4% 16.6% 16.8% 16.1% 17.9% 16.6%

Non- GAAP adjustments —0.5% —0.5% —0.7% —0.7% —0.6% —0.6% —1.1% —0.7% —0.8% —1.5% —1.2%

Non- GAAP operating expenses 14.7% 14.7% 14.6% 14.5% 15.0% 14.8% 15.5% 16.1% 15.3% 16.4% 15.4%

1 Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

25 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Supplemental Non-GAAP Measures

($ millions) 2Q’12 3Q’12 4Q’12 FY12 1Q’13 2Q’13 3Q’13 4Q’13 FY13 1Q’14 2Q’14

GAAP operating income 1,146 1,142 931 4,431 824 901 589 698 3,012 226 272

Non- GAAP adjustments:

Amortization of intangibles 95 100 104 391 110 150 165 188 613 196 196

Severance & facility actions and

Acquisition- related 87 46 108 313 76 72 132 68 348 80 87

Other1 0 0 0 0 0 0 0 0 0 88 47

Total adjustments to opinc 182 146 212 704 186 222 297 256 961 364 330

Non- GAAP operating income 1,328 1,288 1,143 5,135 1,010 1,123 886 954 3,973 590 602

Percentage of Total Net Revenue:

GAAP operating income 7.3% 7.4% 5.8% 7.1% 5.7% 6.2% 4.3% 4.9% 5.3% 1.6% 1.9%

Non- GAAP adjustments 1.2% 1.0% 1.3% 1.2% 1.3% 1.6% 2.2% 1.8% 1.7% 2.6% 2.2%

Non- GAAP operating income 8.5% 8.4% 7.1% 8.3% 7.0% 7.8% 6.5% 6.7% 7.0% 4.2% 4.1%

1 Includes expenses associated with Dell’s proposed merger and retention cash bonus awards granted to certain key employees in the first quarter of Fiscal 2014.

26 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor

Supplemental Non-GAAP Measures

($ millions) 2Q’12 3Q’12 4Q’12 1Q’13 2Q’13 3Q’13 4Q’13 1Q’14 2Q’14

Net TTM Free Cash Flow

Cash flow from operations 5,235 5,173 5,527 4,924 3,187 3,679 3,283 3,382 4,423

Capital expenditures (549) (670) (675) (680) (641) (548) (513) (529) (573)

Financing receivables 375 412 372 322 282 261 193 135 185

Net TTM Free Cash Flow 5,061 4,915 5,224 4,566 2,828 3,392 2,963 2,988 4,035

Net Free Cash Flow

Cash flow from operations 2,374 851 1,837 (138) 637 1,343 1,441 (39) 1,678

Capital expenditures (159) (214) (165) (142) (120) (121) (130) (158) (164)

Financing receivables 100 83 210 (71) 60 62 142 (129) 110

Net Free Cash Flow 2,315 720 1,882 (351) 577 1,284 1,453 (326) 1,624

27 Dell Investor Relations – 2Q FY14 Performance Review See Financial History at www.dell.com/investor