Dell has posted drastically reduced profits for the second quarter of 2014, with income down by 72 percent as it suffers from a declining PC market. The huge decline comes amid a protracted battle to take the company private.
In total the firm posted profits of $204m for the period, down from $732m in the second quarter last year.
The End User Computing business unit saw revenue of $9.1bn, down five percent on the same quarter in 2012. Dell said that desktop and thin client revenue increased one percent, mobility revenue declined 10 percent, and revenue from software from third parties and peripherals dropped by five percent.
Although this led to a huge slump in income, revenues rose by a fraction from $14,483bn to $14,514bn. This was due to growth in other areas of the business, with the Enterprise Solutions Group posting an eight percent increase to $3.3bn and Dell Services up two percent to $2.1bn, numbers that will offer some hope for Dell in its bid to evolve from a PC maker into an IT enterprise vendor.
The figures left Dell with $13.9bn in cash and investments.
Dell chief financial officer Brian Gladden admitted that the huge slump for the quarter underlined the difficulties facing the firm, but said there were opportunities ahead.
“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,” he said.
The numbers come amid a hugely protracted battle to try and take Dell private, as first announced on 5 February, with founder Michael Dell partnering with equity firm Silver Lake and Microsoft as part of the deal. The group hope that by going private, Dell can refocus and rebuild the company away from the prying eyes of investors and market watchers.
However, they have encountered strong resistance from rival Carl Icahn who believes they have undervalued the company and this has led to an ongoing back and forth of offers for shares.
The latest update saw Dell and co add $350m to the buyout deal by offering an extra dividend per share of $0.13 on top of the $13.75 per share they were originally offering. This is set for a vote on 12 September.
In light of this Dell did not give an earning guidance outlook for its next quarter, as is customary, citing the ongoing buyout upheavals.
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