Dell has reportedly slipped by 79% in net profit due to poor computer sales as more consumers shift to tablets and smart phones.
Net profits fell to $130m with revenue down 2% to $14bn. On Thursday, Dell said that revenue from new technologies, services and software increased 12% to $5.5bn.The battle between billion founder Michael Dell and two of its biggest shareholders still goes on.
Michael Dell plans to take the company private are being opposed by investors. Dell and the private equity group Silver Lake has offered to buy back the company for an approximately $24.4bn and divert the PC business to computer and mobile services.
The biggest shareholders of the company Carl Icahn and Southeastern Asset management are against the private deal and call the deal “too cheap “for a company trying to become a service provider.
With the argument between the shareholders and founder Michael Dell it’s hard to point out which direction the PC makers might be taking.
“We made progress in building our enterprise solutions capabilities in the first quarter, we have taken actions to improve our competitive position in key areas of the business, especially in end-user computing, and it has affected profitability,” Chief Financial Officer Brian Gladden said.
Due to Michael Dell’s private deal, the company could not provide a financial outlook. Shares in Dell slipped 3 cents to $13.40 after closing at $13.43 on Nasdaq.
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