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Dell struggles as founder prepares for vote on going private

Dell has reported second quarter revenue of $14.5bn, flat year over year, with a big decline in PC sales

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Dell has reported second quarter revenue of $14.5bn, flat year on year, with a continued decline in PC sales.

For its  fiscal 2014 second quarter results, the company’s Enterprise Solutions, Services and Software (ES&S) division reported  revenue of $5.8bn, a 9% increase year on year, boosted by  the $2.4bn acquisition of Quest Software. But in the End User Computing division, revenue was down 5% compared to the same period last year.

Operating income for the quarter was $205m, a 71% decrease. Dell desktop and thin client revenue increased 1%, mobility revenue declined 10% and revenue for software from third parties and peripherals declined 5%.

The company’s founder Michael Dell has partnered with private equity firm Silver Lake in a bid to take Dell private. Shareholders will be asked to vote on the deal on 12 September. But activist investor Carl Icahn is against the plan, and has launched a legal challenge relating to how shareholders that abstain from voting are counted.

“In a challenging environment, we remain committed to our strategy and our customers, and we’re encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our enterprise solutions, services and software businesses,” said Brian Gladden, Dell chief financial officer.

The latest figures for PC shipments across Western Europe from Gartner showed that year-on-year the market had declined by 19.8% to 10.9 million units being sold, with desktops and laptops down in both business and consumer categories. Dell is the second biggest PC company in the UK. According to Gartner, its market share declined 1.2% during the second quarter.

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