Dell, activist investor Carl Icahn (Carl Icahn) and the company's billionaire founder takeover battle between the subject, as PC sales continue to shrink, the profit fell 79%.
The disappointing results of efforts to lend weight Michael Dell. Dell the man who transform it into enterprise computing service providers, mainly from computer manufacturers in a shrinking market, the best practice is to take the $ 24.4 billion of the world's third-largest PC from the college dorm The manufacturer's privately away from public scrutiny.
Reflect the shift in focus, Dell said on Thursday, enterprise solutions, services and software revenue increased 12%, to $ 5.5 billion, while overall revenue decline of 2%. Its "end-user computing division," linked to the PC sales decline of 9%.
In order to enhance its corporate business and go head with more mature players, such as International Business Machines Corporation (IBM) and Hewlett-Packard, Dell is investing heavily in research and sales, in order to retain customers.
However, Icahn and key stakeholders Southeastern Asset Management dismissal of Michael Dell to private transactions, too cheap trying to become a major supplier of enterprise computing. Their new leadership and additional cash or stock to shareholders.
The hardware profits are quite terrible, this should be generally supportive of (Michael) Dell's bid, "Morningstar analyst 卡尔兰菲尔 said. "But Michael Dell's strategy is to actively pricing to win key contracts."
It does not seal the case of "one way or the other."
A future
Icahn and Michael Dell's struggle to take what kind of direction, the company stressed that enjoy more than 10 years roaring growth in the PC industry, the end of the era of uncertainty until the advent of smart phones and tablet PCs.
Now, the company has always insisted on a model of innovation, as the beginning of the 21st century is steadily ceded ground to lower-cost Asian rivals like Apple's mobile phone hardware manufacturers
Chief Financial Officer Brian Gladden said: "we have made progress in the first quarter, our capacity-building enterprise solutions. "We have taken action to improve our competitive position in key business areas, particularly in the end-user computing, it has affected the profitability."
Profits on a GAAP basis fell to 19.5% from 21.3% in the same period last year, as total operating expenses increased by 12%.
Net income fell to 1.30 billion, $ 635 million in the same period last year. Certain items, non-interest income decreased 51% to $ 372 million, or 21 cents per share, from $ 761 million, or 43 cents per share, a year earlier.
Lag so far Wall Street expectations of 35 cents.
The decline in revenue in its fiscal first quarter ended May 3 to $ 14.1 billion, higher than the average analyst forecast of $ 13.5 billion, according to Thomson Reuters I / B / E / S.
The company said it was unable to provide financial prospects, because it is among Michael Dell to private transactions.
Dell's shares fell 3 cents to $ 13.40 in after-hours trading, after closing at $ 13.43 on the Nasdaq.
 
 



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