| ||Thread Tools|
|21st February 2013, 08:47||#1|
Join Date: May 2010
Dell profit slumps
Dell has revealed to shareholders why its moves to go private at a slightly reduced share price might have been a good plan for them.
Dell reported a 31 percent drop in profit, which has been caused by a shrinking consumer business. The news could not have come at a better time for Michael Dell who is trying to convince shareholders to accept $13.65 a share to buy out the company.
Some shareholders think that price is too low, although after the announcement of falling profits, Dell's share price is sitting at $13.80.
Analysts have also warned that things will get much worse for Dell before they get better. Most are saying that Dell's rapidly shrinking business and dismal prospects in a declining PC market may make the buyout more attractive.
Sales across every business line, except servers and networking, declined in the fiscal fourth quarter. Revenue from servers and networking climbed 18 percent, driven by its datacenter business and revenue from recently acquired companies such as Quest Software and Sonic Wall. But generally revenue slid 11 percent.
According to the Times of India, Dell posted net income of $530 million in its fiscal fourth quarter on revenue of $14.3 billion. That came in slightly higher than analysts expected.
Dell refused to give a financial forecast for fiscal 2014 or the fiscal first quarter, citing the proposed buyout.
So far, shareholders representing almost 14 percent of Dell shares not held by Michael Dell have now said they will vote against the deal. Others have said that if Dell offered them $15 per share they would agree.
|Thread||Thread Starter||Forum||Replies||Last Post|
|Apple Trying To Profit From Director's Suicide||Stefan Mileschin||WebNews||0||24th August 2012 16:52|
|Dell profit drops 33 percent in Q1, both home and corporate sales take a hit||Stefan Mileschin||WebNews||0||23rd May 2012 09:06|
|AMD on track to report a profit for Q3||jmke||WebNews||1||19th August 2008 14:39|
|Blogging for fun - and profit||Shogun||General Madness - System Building Advice||0||26th December 2007 22:14|
|Microsoft profit rises on PC demand||Sidney||WebNews||1||25th October 2007 21:21|
|Intel 2Q profit jumps 44 percent||Sidney||WebNews||4||18th July 2007 19:06|
|Street Spanks AMD on Profit Worries||jmke||WebNews||0||23rd October 2006 07:26|
|Dell Strikes Back - HardOCP Visits Dell||jmke||WebNews||1||24th May 2006 21:04|
|AMD makes profit again at expense of Intel||jmke||WebNews||0||13th April 2006 09:10|
|Transmeta slumps on liquidity warning||Sidney||WebNews||0||12th April 2005 14:39|