- GOP hopes taking shutdown off the table with budget deal will pay dividends
- Chinese Death Star: The moon cited as the perfect launch pad for ballistic missiles
- Help wanted: Homeland Security plagued by vacancies at the top
- We are not amused: Queen’s protection officers warned to keep ‘sticky fingers’ off the royal cashews
- Unleash the crossbows: Gov. Scott Walker creates new hunting season
- Bubonic plague kills 20 in Madagascar
- G-20 diplomats fell for hacker attack promising nude photos of former French first lady Carla Bruni
- Minnesota guardsman charged with stealing private soldier data for fake IDs
- Florida appeals court rules universities can’t regulate guns
- Vladimir Putin defends Russian conservative values
Dell’s slump worsens in fiscal 2Q; outlook weakens
SAN FRANCISCO (AP) - Dell Inc.’s slump deepened in its latest quarter as the growing popularity of smartphones and tablets undercut sales of its desktop and laptop computers.
The fiscal second-quarter results announced Tuesday served as the latest reminder of the challenges facing Dell and other personal computer makers as they scramble to adapt to the technological upheaval unleashed by Apple Inc.’s line of sleek devices such as the iPhone and iPad.
The shift to more mobile computing has established Apple as the most valuable company in U.S. history, while businesses that revolved around selling traditional PCs.
Dell Inc., the second largest U.S. maker of personal computers, is trying to adjust by expanding into software, technology consulting, data storage and computer servers _ all of which produce higher profit margins than selling PCs and printers.
“We’re transforming our business, not for a quarter or a fiscal year, but to deliver differentiated customer value for the long term,” Michael Dell, the company’s CEO and founder, said in a statement Tuesday. “We’re clear on our strategy and we’re building a leading portfolio of solutions to help our customers achieve their goals.”
As part of its makeover, Dell on Tuesday announced a new leader for its division that oversees many of its corporate products, including computer networking and data storage. Marius Haas is replacing Brad Anderson as president of Dell’s enterprise solutions. Haas most recently worked at the investment firm Kohlberg, Kravis, Roberts & Co. after previous stints at Dell rival Hewlett-Packard Co. and Intel Corp.
“We are going to make what is a great business today an even larger and more successful business,” Dell said of his plans for enterprise solutions during a Tuesday conference call with analysts.
Even if Dell’s strategy is successful, the company’s evolution will take time. That reality has caused Dell’s stock to fall this year while the overall market has been climbing.
In a sign of further weakness ahead, Dell lowered its earnings target by 20 percent for its fiscal year ending in January. Dell trimmed its full-year guidance, even though its adjusted earnings for the just-completed quarter topped analyst projections.
The company, which is based in Round Rock, Texas, tied it its bleaker forecast to “the uncertain economic environment, competitive dynamics and soft consumer business.”
Dell shares shed 55 cents, or 4.5 percent, to $11.79 in Tuesday’s extended trading following the release of the earnings report.
In its latest quarter ending in July, Dell earned $732 million, or 42 cents per share. That represented an 18 percent decline from net income of $890 million, or 48 cents per share, at the same time last year.
If not for costs unrelated to its ongoing business, Dell said it would have earned 50 cents per share. On that basis, Dell topped the average estimate of 45 cents per share among analysts surveyed by FactSet.
Revenue for the period fell 8 percent from last year to $14.5 billion. That was nearly $200 million below analyst forecasts.
The weakest area was in Dell’s mobility division, where revenue plunged 19 percent from last year. Sales of desktop PCs decreased 9 percent from last year. Combined, revenue from desktop and laptops fell 14 percent from last year, said Brian Gladden, Dell’s chief financial officer.
By Mangosuthu Buthelezi
- NAPOLITANO: A conspiracy so vast
- Obama's Afghanistan experts stumped on U.S. death toll, war costs during hearing
- House pushes through two-year Ryan-Murray budget deal
- Comma on!: Twitter erupts over Obama-Castro 'marriage'
- Obama takes 'selfie' at Mandela's funeral service
- Biden guarantees victory on immigration reform
- Chinese man fed up with his girlfriend's shopping jumps to his death
- Rand Paul: Budget deal 'shameful,' 'huge mistake'
- N. Korean news agency: Kim Jong Un's uncle executed
- U.S. debt jumps a record $328 billion tops $17 trillion for first time
Independent voices from the The Washington Times Communities
Born in 1930 in rural Missouri, Charles Vandegriffe, Sr., brings his time and place to the Communities.
Columns from Voices around the World talking about the events, people, politics and social issues that concern us wherever, and whoever, we are.
Chef Mary Moran discusses the food we eat, where it comes from and what it does for us.
An informed and often humorous take on the world of advertising, public relations and social media. 100% Pure. Not from concentrate.
Extraordinary day at Redskins Park
White House pets gone wild!
Let it snow