Dell announces flat sales, quarterly profit falls 72%Dell reported results that underscore challenges facing the company amid a decline in personal-computer sales, whatever the outcome of a vote next month on Michael Dell’s $24.9 billion plan to go private.
Net income for the fiscal second quarter fell 72 percent to $204 million, or 12 cents a share, from $732 million, or 42 cents, a year earlier, the Round Rock, Texas-based company said in a statement yesterday. Analysts on average predicted profit of $275 million.
The plunge in earnings bolsters the case made by Dell and Silver Lake Management that shareholders should accept their proposal to restructure Dell as a private company. Sales were helped by rising demand for servers and networking gear, even as Dell and other PC makers were stung by a slump in PC shipments, which have fallen for five straight quarters.
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