On Thursday, Dell Inc reported a slump during the second quarter as the sales of personal computer extended their downward coil. The PC manufacturer is currently entangled in a takeover battle between activist investor Carl Icahn and its founding CEO Michael Dell.
Dell's net income plunged by 72% to USD204 million or 12 US cents per share from last year's USD732 million or 42 US cents per share. The nose dive in earnings bolstered the concerns expressed by CEO Dell and Silver Lake Management LLC. They both said stockholders must accept their USD24.9 billion bid to streamline Dell as a private corporation.
Dell's sales were aided by servers and networking gear's growing demand. Dell and other PC manufacturers were hurt by the plunge in PC shipments which have decreased for five consecutive quarters.
"They did surpass very low expectations but the year-over-year comparisons aren't promising," Robert W. Baird & Co analyst Jayson Noland said. "The PC market continues to trend below expectations. It will play into Michael Dell's plea to take the company private."
The revenue of Dell during the quarter that ended in August 2 was slightly changed at USD14.5 billion. In contrast, the average projection of analysts was USD14.2 billion.
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