Dell posts 79% drop in profits
May 17 , 2013
Dell posted a 79 percent drop in profits on Thursday.
The sharp slide comes as more consumers choose smartphones and tablets over PCs.
Dell’s profits were down to $130 million in the three months to May while revenue decreased by 2 percent to $14 billion.
The figures come as the firm finds itself in the middle of a takeover battle between founder Michael Dell, and investor Carl Icahn and Southeastern Asset Management, two of the company’s biggest shareholders.
Dell wants to privatize the company, a plan opposed by some investors.
Dell and private equity group Silver Lake have offered to buy back the company for $24.4 billion.
However, the firm’s major shareholders believe the valuation is too low and have suggested offering additional shares to shareholders and hiring a new management team.
Dell did not issue a profit guidance for the second quarter due to the ongoing issue.