Dell Inc. reported a $204 million net income for its fiscal second quarter, down to 72 percent compared to last year’s same quarter. Total earning was $14.5 billion, which is approximately equal to the amount it had received of the same period last year. On a positive note, it is slightly better than the $14.18 billion Wall Street had anticipated.
A Thomson Reuters business analyst added that on an adjusted basis, not including specific charges, costs and other items, Dell’s net income was 25 cents per share.
Dell chief financial officer Brian Gladden said in a statement in the New York Times that they remain committed with their strategy and costumers in a difficult environment and that they were encouraged by heightened customer interest in their end-to-end solutions and continued growth in their Enterprise, Services, Solutions, and Software businesses.
The multinational computer technology corporation income reflects slowing sales of personal computers at a time when consumers are more interested in buying tablets. To keep their business going, Dell marked down prices for a number of its products while sacrificing profit margins.
The company’s profit for its end-user computing business that includes accessories, computers and third-party software plummeted by five percent to $9.1 billion from the year-earlier period.
Enterprise computing is one of the areas that showed strong growth for Dell. It brought in a total profit of $3.3 billion, eight percent higher than the same period a year ago.
The technology research company Gartner told the New York Times that Dell is not alone in this struggle. Personal computer sales decreased to 76 million in the second quarter worldwide.
In an interview with a Gartner analyst Mikaki Kitagawa, she said that, “low-cost tablets were eating into the sales of low-end PCs in mature markets and in economically disadvantaged markets, a cheaper tablet is the first computing device many people buy.”
She also added that though Windows 8 has been held responsible for the PC market decline, it is still unsubstantiated.
The company’s shareholders are scheduled to vote on Mr. Dell’s bid of $13.65 per share or $24.4 billion on Sept. 12.
