P&L

Dell can’t shake its problem of perpetually falling PC sales

August 15, 2013
August 15, 2013

Dell-quarterly-revenue-in-millions-of-dollars_chartbuilder

The numbers: Not bad. PC maker Dell reported earnings per share of $0.25, on revenue of $14.5 billion, slightly beating estimates.

The takeaway: Expectations for Dell have been low considering the overall slump in PC sales, so the fact that the company beat analyst estimates, even by a little, was a bit surprising. But the PC division continued to see slow sales, and revenue fell by 5% in that unit. Dell’s division geared toward corporate customers fared better, with an 8% increase in revenue.

What’s interesting:  Although Dell had better than expected earnings, the performance in PC sales still bolsters Michael Dell’s argument that the company would be better off in private hands. He and private equity firm Silver Lake offered to acquire Dell in February, but have faced shareholder opposition from activist investor Carl Icahn and others. After a few delays, investors are now scheduled to vote on the buyout proposal on Sept. 12.

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