News Column

Dell Earnings Tank Amid Drooping PC Market

May 16, 2013

The ongoing slump in PC sales is taking its toll on Dell. The Texas-based computer maker reported a 79-per-cent plunge in first-quarter profits Thursday, earning 130 million dollars, compared to the 635 million dollars a year earlier.

Dell said that sales dipped just 2 per cent to 14.1 billion, but the company had to spend a lot to acquire many of those sales in the enterprise solutions sector to compensate for lower consumer sales which dropped by 9 per cent to 8.9 billion dollars.

The downbeat results came amidst a fierce buyout battle for the company, which earlier this year agreed to be taken private by founder Michael Dell and a consortium of private equity companies. That 24.4-billion-dollar deal is being challenged by activist shareholder Carl Icahn and allies.






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Source: Copyright 2013 dpa Deutsche Presse-Agentur GmbH