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Dell’s sales fall ahead of proposed buyout

February 20, 2013 By: Dr Search Principal Consultant at the Search Clinic Category: Computers, Dr Search, Ecommerce, Search Clinic, Technology Companies, Uncategorized

The computer maker Dell has reported quarterly falls in profits and sales in what could be its last set of results as a public company.Dell's sales fall ahead of proposed buyoutThe world’s third largest PC maker said net profit in the fourth quarter fell 31% to £345 million ($530 million)  compared with the same period a year ago.

Revenue fell 11% to £9.34 billion which were hurt by the shrinking consumer business.

Founder Michael Dell has offered to buy the business for £15.9 billion.

But his attempt to turn it back into a private firm has faced opposition over the value of the consultancy side of the business.

Dell’s largest independent shareholder, Southeastern Asset Management, said the offer “grossly undervalues the company”, while reports suggest other large investors also oppose the deal.

In recent years Dell has struggled to compete with cheaper Asian rivals, as well as the boom in smartphones and tablet computers, and has focused more on corporate needs and less on the home consumer.

For the full year ending 1 February 2013, net profit fell 32% to £1.55 billion, while revenue fell 8% to £37.19 billion.

Dell said that it was not providing an outlook for the 2014 fiscal year or for the first fiscal quarter, given the proposed merger agreement to take the company private.

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