Dell Posts Lower Q4 Profit
PC-maker Dell (NASDAQ: DELL), which has agreed to be acquired by founder Michael Dell and private equity firm Silver Lake in a $24.4 billion deal, released its fiscal fourth-quarter earnings on Tuesday after the closing bell. In the wake of the results, the stock added 0.36 percent to $13.85 in the after hours trading session.
The company reported that net income fell to $530 million or $0.30 per share, compared to $764 million or $0.43 per share, in last year's corresponding period.
On a non-GAAP basis, the company reported net income of $702 million or $0.40 per share, comapred to $913 million or $0.51 per share, in last year's fourth-quarter. This beat analysts' consensus EPS estimates of $0.39 by a penny.
Total revenue in the quarter was down to $14.31 billion from $16.03 billion last year. This also came in just ahead of consensus revenue estimates of $14.12 billion.
On February 5, Dell entered a definitive merger agreement whereby it would be taken private by Michael Dell in combination with Silver Lake. The company has been hurt by falling PC sales and is attempting to re-organize with more of a focus on enterprise services.
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