August 17, 2013

Dell's Profit Fell by 72%

Few weeks back we rolled out the financial fall of Yahoo, now on of the top technology leading company Dell, once the world's leading market for computers, is now having some hard times in gaining profit. Every company has now and then managed to get the boost period, which Dell has attained, but some how struggling to maintain it, because of which now facing the profit fell.

Dell Inc's profit fell by 72%, following the decline in sales in the context of the continuing struggle for the future of the company between the founder of the computer manufacturer and activist investor Carl Aykanom.

Dell, in order to lessen the risk, increasingly applies discounts to stimulate sales and seeks to shift to corporate business computer services. Corporate business computer services include selling computers to Corporate brands, providing troubleshooting services etc.

In the second quarter of the fiscal year, Dell revenue was $ 14.5 billion, unchanged year on year and exceeding the average of analysts' forecasts - $ 14.2 billion

Company's net income fell to $ 204 million, or 12 cents a share, from $ 732 million which was 42 cents a share, a year earlier. These types of income fell shakes the believes of investors and share holders, but Dell is a world class brand, they know how to keep the trust and maintain balance in the accounts books of investors and shareholders.

Something important also rise up despite of the forecast, excluding non-recurring expenses and income, the company earned 25 cents a share, exceeding the forecast of 24 cents. Yet gross margin fell a percentage point to 19.6%.

Dell's profit fell by 72%

Photo: EPA

Founder and CEO Michael Dell said that the company wants to turn the third-largest PC maker in the world in a private company for $ 25 billion, claiming that will it be easier to transform the company. Icahn Investment Fund and Southeastern Asset Management, on the other hand, oppose the deal offered by Dell, arguing that the price offered to them for a firm is too low.

Source: Reuters, Liga

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