Dell profits crumble as battle for PC giant’s ownership rages on

PROFITS at computer firm Dell plunged 72 per cent in the second quarter as the contest over the ownership of the company continues.

Despite sales of $14.5bn (£9.27bn) between April and June this year, the company posted net income last night of only $204m, way down from the $732m it made in the second quarter of 2012.

This pushed profits per share down to 12 cents, from 42 cents in the same period 12 months earlier.

Michael Dell, the company’s founder, is currently attempting to return the business to his private ownership, but is opposed by veteran investor Carl Icahn.

A court in Delaware is due to take testimony from Icahn today as he attempts to prevent Michael Dell and the current board of directors from allowing the firm to go private.

Icahn argues that the deal would undervalue the company, and wants a simultaneous vote on his own offer for the company to be held with shareholders.

A vote on Dell’s bid is scheduled for 12 September.