Monday, April 1, 2013

Dell blames 'deteriorating outlook' for PCs in federal filing

Dell blames 'deteriorating outlook' for PCs in federal filing

Dell blames 'deteriorating outlook' for PCs in federal filing

In a massive filing with the SEC last Friday, Dell bares its soul on the company's reasons for going private.

CNET reported Sunday that PC maker Dell has plenty of valid reasons for going public, laying them all out for the U.S. Securities and Exchange Commission (SEC) late last week.

In a 274-page filing presented to the SEC on Friday, Dell argues its case for the company going private by accepting a $ 24.4 billion offer currently on th e table.

Included among the scathing evidence presented in the filing is a "deteriorating outlook for the PC market as a result of, among other things, smartphones and tablets cannibalizing PC sales."

Shaky PC future

Dell's filing includes portions of a December 2012 presentation from Founder and Chief Executive Officer Michael Dell, who told the Board of Directors that going private would be "the best course for the Company and its unaffiliated stockholders."

Other meetings from the same month point a finger at the "uncertain adoption of the Windows 8 operating system," which threatens to further drag on the ailing PC maker.

"Mr. Dell stated his belief that such initiatives, if undertaken as a public company, would be poorly received by the stock market because they would reduce near-term profitability, raise operating expenses and capital expenditures, and involve significant risk," the SEC filing added.

Dell Chief Financial Officer Brian Gladden also painted a dreary picture last September, citing "adverse developments, coupled with generally weakening demand in the global PC market and lower PC margin rates."

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//PART 2