Rajnath Singh refuses to pinpoint blame about 'rumours' on son

Rajnath Singh refuses to pinpoint blame about 'rumours' on son

There has been some reports of Rajnath Singh's son being ticked off by PM Narendra Modi...
New Flight MH 370 theory

New Flight MH 370 theory

Malaysia Airlines Flight MH370 may have turned south earlier than previously thought

Dell profit plummets 31% as investors ponder $24 bn buyout

Feb 20 2013, 10:14 IST
Comments 0
Dell profit plummets 31% as investors ponder $24 bn buyout. (Reuters) Dell profit plummets 31% as investors ponder $24 bn buyout. (Reuters)
SummaryMichael Dell is offering $13.65 a share to buy out the company.

of about $15 per share was a "fair price."

"The better-than-expected results means that's the fair thing to do, in our opinion, is to raise the bid to a price where current shareholders reap some of the rewards while the take-private consortium enjoys the prospect of a respectable return," Misek said.


Dell posted net income of $530 million, or 30 cents a share, in its fiscal fourth quarter on revenue of $14.3 billion. That came in slightly higher than the average analyst estimate of revenue of $14.12 billion, according to Thomson Reuters I/B/E/S.

Excluding certain items, it earned 40 cents a share, compared to an average forecast for 39 cents.

Shares of the company edged 0.5 percent higher in after-hours trade to $13.87, from a close of $13.805 on the Nasdaq.

Dell has said it plans to stick to its current turnaround strategy to diversify away from personal computers following the buyout.

The company, once regarded as a model of innovation in the early 2000s for pioneering online ordering of custom-configured PCs, missed the big industry shift to tablet computers, smartphones and high-powered consumer electronics such as music players.

It is also had to defend its market share against hard-charging Asian rivals like Lenovo.

Dell has lost 40 percent of its value since last year's peak and is trying to reinvent itself as a seller of services to corporations - an internal overhaul that some analysts say may be better conducted away from public scrutiny.

The company, was also hurt by the slide in holiday-season sales of personal computers for the first time in more than five years despite the launch of Microsoft Corp's new Windows 8 operating system.

Dell's worldwide PC shipments fell nearly 21 percent to 9.48 million in the last three months of 2012 from 11.97 million in the same period a year ago, according to IDC.

The bright spot for Dell was its growing sales of its enterprise solutions and services revenue, which rose 6 percent to $5.2 billion, and accounted for 34 percent of revenue for fiscal year.

In contrast, consumer revenue plummeted 24 percent to $2.8 billion, underscoring the plight of the broader PC market while sales to large corporations declined 7 percent to $4.7 billion in the quarter.

Dell said it was seeing growth in tablets and low-end desktops and notebooks. It ended fiscal 2013 with $15.3 billion in cash and investments.

Single Page Format
Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...