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Dell’s quarterly profits collapse by 72% as takeover battle continues

Dell's quarterly profits have collapsed by 72 per cent in the last year, the struggling computer maker has revealed.

The announcement comes as the battle between founder Michael Dell and billionaire shareholder Carl Icahn for control of the company rages on.

Although the firm made a vague attempt to mask the results by leading with the flat year on year revenue result of $14.5 billion (£9.3 billion), net income - final profits after all deductions - fell from last year's Q2 level of $732 million (£470 million) to just $204 million (£131 million).

Earnings per share was down 71 per cent from the previous year to $0.12 (8p). This represents the seventh consecutive decline in profits for the company.

"In a challenging environment, we remain committed to our strategy and our customers, and we're encouraged by increasing customer interest in our end-to-end solutions offerings and continued growth in our enterprise solutions, services and software businesses," CFO Brian Gladden said in a statement.

Dell remains the world's third largest PC maker, with half of its revenue coming from Desktop sales. However as the market has shifted from PC to mobile devices, Dell has struggled to maintain sales.

Earlier this week Chinese tech firm Lenovo announced that, despite becoming the world's biggest PC provider in the last quarter, smartphone and tablet sales had overtaken Desktop sales for the first time at the company.

Dell CEO Michael Dell is currently attempting to lead a private takeover of the firm in order to move the business away from PCs onto mobile devices and business software without shareholder scrutiny.

The move is being aggressively opposed by billionaire mogul Carl Icahn who holds a large share in the company.