Dell Parent Denali Posts 2% Revenue Decline -- Update
May 13 2016 - 9:23PM
Dow Jones News
By Josh Beckerman
Denali Holding Inc., the parent company of Dell Inc., said
revenue for its latest quarter was about $13.2 billion, down 2%
from a year earlier.
Operating loss was about $100 million for the quarter ended
April 29, compared with an operating loss of about $300 million in
the 2015 period.
The Round Rock, Texas, company said Friday that its results
reflect general trends that it had noted in a filing Wednesday,
when Denali discussed issues including pricing pressure and "an
increasingly challenging demand environment."
Founder Michael Dell and private-equity firm Silver Lake took
the company private for about $24.9 billion in 2013. The company
said its new structure would make the company "even more flexible
and entrepreneurial." Out of the public spotlight, Dell pivoted
from personal computers toward more profitable areas, such as
storage and security.
In October, Dell announced a complex cash-and-stock deal to buy
EMC Corp. that marks the largest-ever takeover in the technology
industry. The transaction was originally valued at $67 billion but
that figure has declined as part of the payment is a tracking stock
linked to the share price of VMWare Inc., which is majority-owned
by EMC.
Dell said in March that it would sell its information-technology
services unit to NTT Data Corp. for about $3.1 billion. Last month,
Dell's cybersecurity arm, SecureWorks Corp., held an initial public
offering.
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
May 13, 2016 21:08 ET (01:08 GMT)
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