FILE – In this Thursday, Aug. 28, 2008, file photo, boxes containing Dell computers are stacked on an upper shelf of a Best Buy store in Seekonk, Mass Dell’s earnings plunged 72 percent during its 2013 fiscal second quarter as the slumping personal computer maker struggled to cope with technological upheaval and shareholder unrest. Photo/Stew Milne, File)
SAN FRANCISCO (AP) — Dell’s woes worsened during its most recent quarter as the slumping personal computer maker resorted to rampant price cutting to slow a sales decline driven by a growing reliance on smartphones and tablets to connect to the Internet and perform other technological tasks.
The discounting contributed to a 72 percent drop in Dell’s fiscal second-quarter earnings.
The disheartening results announced Thursday could help Dell Inc.’s board persuade more of the company’s stockholders that they’re better off accepting a buyout offer from a group led by CEO Michael Dell rather than risk further financial deterioration in the months ahead.
After Dell’s report came out, ISI Group analyst Brian Marshall advised shareholders to “take the money and run” in a research note that referred to a 1976 song by the Steve Miller Band.
Shareholders are scheduled to vote on Michael Dell’s $24.8 billion bid on Sept. 12. The proposal faces fierce resistance from two major Dell stockholders, billionaire Carl Login to read more