Involved in its founding CEO, activist investor Carl Icahn (Carl Icahn) takeover battle between the personal computer maker Dell Inc. (NSQ: DELL), released on Thursday quarterly profit fell 72%, PC sales continue their downward spiral.
Dell, once led the global PC sales and the holding of the production chain as a model of innovation, are increasingly resorting to price cuts to soothe nervous clients regarding their future spearhead late into the enterprise computing market.
"This is a foreseeable bad. Compression level, and their profit margins, when they first sold more than earnings," said Morningstar analyst 卡尔兰菲尔, this is not a big surprise. "You have to in some way to offset this uncertainty."
Dell's theme is its future competition, founder and CEO Michael Dell made a $ 25 billion takeover to take private personal computer manufacturer, and a leading shareholder Icahn opposed the proposal, based on too cheap.
Dismal results may shore up the CEO's statement, his $ 13.75-an, share sale, plus a 13-cent dividend, is the world's third PC manufacturer, which requires to undergo a serious overhaul of the public investment by a fair price for the spotlight.
Analysts said Dell has aggressively cut prices to win business customers nervous, in the middle of a complex restructuring with the company's long-term contracts, and must compete with the more mature business services rivals such as Hewlett-Packard (NYSE: HPQ) and IBM (NYSE: IBM).
Some have speculated, Dell, since 2008, has cost about $ 1.3 billion acquisition into storage, software and networks, may reverse direction and unload assets as it continues to adjust the organizational structure.
Lanphier said: "They can not compete on a level playing field," When you have a wrestling match in the future of the company.
The company's after-hours trading shares fell 2 cents to $ 13.68, after a brief rise.
The Gathering Storm
In recent years, the company has become one of the more prominent victims from a mobile device, such as Apple's (NSQ: AAPL) iPad erosion PC market. From Dell's end-user computing sector, which includes computers, sales fell 5 percent to $ 9.1 billion.
Its fate is still closely tied to PC sales, is still about half of the revenue generated. Global PC sales are expected to decline 7% this year, 4.5% next year, according to CLSA (CLSA) analyst.
For the second quarter, Dell reported sales of $ 1.45 billion U.S. dollars, compared with same period last year, and more than 14.2 billion dollars the average analyst expectations.
But net profit plunged $ 204 million, or 12 cents per share, compared to $ 732 million, or 42 cents a share, a year earlier. Excluding special items, gained 25 cents a share, barely edging past the average expected 24 cents, according to Thomson Reuters I / B / E / S.
Gross margin declined by one percentage point from the previous quarter's 19.6%.
Positive for the Dell, from enterprise solutions, services and software business sales increased 9% to $ 5.8 billion, reflecting the greater emphasis on investment in enterprises and government agencies to provide services.
Michael Dell wants to put his company in 1984 in the company's founder dorm into a complete computing service providers, such as HP or IBM. He wanted to do so on the open market from scrutiny, so with private.
However, Dell's competitors already have several years of leadership remains to be seen whether a new strategy to provide customers with a mix of hardware, software and services will be at the same time, more and more customers are cloud-based systems.
Dell CFO Brian Gladden to investors and customers, the company is still focused on the impact of transformation and service to its customers - a common message repeatedly stressed that senior management buyout distraction to continue.
Gladden on Thursday published an open letter, said: "Although the environment continues to be challenging, but we remain focused and committed to achieve this goal,."
On Friday, Icahn and Michael Dell contest will spread to the court. Icahn Delaware Court will hear the request to expedite the hearing of his lawsuit, billionaire activist attempts buyout derailed.
 



Other News:
HK buttons up as typhoon passes on way to China
Dell's quarterly profit plummets amid buyout brawl
Chinese shares hit three and a half week high on upbeat data, props Asia
GOP pushes rising stars amid calls for solutions
Egypt expected to act against pro-Mursi protesters Monday
Mars food study researchers emerge from dome
India industrial output tipped to fall, raising stakes for rupee
Italian president says Berlusconi conviction definitive