Dell Inc. (NASDAQ:DELL) released its latest quarterly earnings report after closing bell today. The company posted earnings of 25 cents per share on $14.51 billion in revenue. Consensus estimates from Thomson Reuters indicated that analysts were looking for earnings excluding items of 24 cents per share on revenue of $14.18 billion.
The struggling PC maker had originally planned to release its earnings next week, but it moved up the release to today.
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Details from Dell’s latest results
Dell Inc. (NASDAQ:DELL) reported that revenue from Enterprise Solutions, Software and Services increased 9 percent to $5.8 billion for the its most recently completed quarter. That amount included the positive benefit from the PC maker’s acquisition of Quest. Revenue from End User Computing fell 5 percent year over year to $9.1 billion.
The company’s Enterprise Solutions Group saw its revenue climb 8 percent to $3.3 billion. Services revenue rose 2 percent to $2.1 billion, driven by a 3 percent increase in support and deployment revenue and a 5 percent increase in revenue from infrastructure, cloud and security services. Software revenue was $310 million but recorded an operating loss.
Dell Inc.’s drama continues
Meanwhile the buyout battle continues between Dell Inc. (NASDAQ:DELL)’s founder and activist investor Carl Icahn. Icahn contends that Michael Dell’s offer undervalues the company and that it should remain public so that shareholders can continue to share in the company’s profits. Icahn sued Dell Inc. (NASDAQ:DELL) earlier this month to keep the special committee from changing the record date and the voting rules for the buyout offer.
Then last Friday, the special committee agreed to change the voting rules and move the record date to the middle of this month. The voting rules were changed to allow only votes which are cast to count in the final vote total. Previously shares which did not cast a vote counted as no votes. In exchange, Mr. Dell and Silver Lake added a 13-cent special dividend and increased their buyout price to $13.75 per share.
Tomorrow a judge will hear Icahn’s lawsuit opposing the changes that were part of the deal.