Dell Sees Revenue Declines, Plans Asset Sale After EMC Deal
In a regulatory filing by EMC, the industry gets a look at Dell's finances, which show revenues sliding due to slowing PC sales.When Michael Dell in 2013 took his namesake company private, he spoke about the need to move out from under the thumb of Wall Street if he was going to accelerate the vendor's transition from a PC maker to an end-to-end IT solutions and services provider. It’s difficult to make decisions and moves that might have long-term benefits at the expense of short-term gains when a company has to report its financial numbers every quarter. Michael Dell talked about wanting to be rid of the 90-day shot clock. As a result, since Dell went private, the industry has gotten few peeks at the company's finances. However, Dell's $67 billion bid to buy data storage giant EMC and its federated companies—one such move that could mean pain in the early years but ultimately prove a boon to the company—has given the industry a window into how Dell has been doing since going private more than two years ago. EMC officials on March 14 filed a lengthy document with the Securities and Exchange Commission (SEC) meant to lay out all the information its shareholders will need when they vote on whether to accept Dell's offer at a meeting in the coming weeks. The 348-page document touches on everything from the makeup of both Dell and EMC to the reasons for the deal to the challenges a combined company will face. One of the points it outlines is the finances of both companies. What it shows of Dell is a company that is battling declining revenues and yearly losses, and one that still garners the bulk of its sales from a PC business that is still being battered by a global market that has been contracting for almost four years.
According to the document, in the 12 months ending Jan. 29, Dell's revenues came in at $54.9 billion, down from the $58.1 billion the previous fiscal year. Also in the most recent year, the company lost $383 million, more than the $422 million the company lost the year before.