Dell profits plunge on PC woes

US computer giant Dell said Thursday its quarterly profit plunged 79 percent from a year ago, as a shift away from PCs hammered the company's bottom line. The net profit for the first fiscal quarter slumped to $130 million, as the Texas-based group was studying a plan to go private to restructure in the face of a shifting technology landscape. Earnings per share adjusted for special items amounted to 21 cents a share, far below the average Wall Street estimate of 35 cents a share. Revenues dipped two percent from a year ago to $14.07 billion, beating most analyst forecasts. The results come with Dell and dissident shareholders locked in a battle over the company's value following a bid by founder Michael Dell to take the company private. Michael Dell, who is heading the $24.4 billion offer for the company -- has argued that a radical change is needed to get the company on track in a market shifting away from PCs to mobile devices. But dissident investors led by corporate raider Carl Icahn have argued that the bid undervalues Dell and that the private equity deal would be a "giveaway." Icahn has proposed an alternative plan based on a so-called leveraged recapitalization. In the quarterly results, Dell said revenues from its end user computing segment fell nine percent and operating profits tumbled 16 percent. The news was somewhat better in other areas where Dell has sought to diversify, such as servers and software. "We made progress in building our enterprise solutions capabilities in the first quarter and are confident in our strategy to be the leading provider of end-to-end scalable solutions," said chief financial officer Brian Gladden. "In addition, we have taken actions to improve our competitive position in key areas of the business, especially in end-user computing, and it has affected profitability. We'll also continue to make important investments to support our strategy and drive long-term profitability." Dell offered no outlook for the second quarter. It has created a special committee of the board to study the private equity deal and alternative bids.