Dell profit sinks on Q3 charges



Dell has reported a 28 per cent profit drop in its Q3 results. Net income fell to $606 million,
or EPS of $0.25, from $846
million, or EPS of $0.33, a
year ago. Excluding one-off charges, profit rose 12 per cent. Sales rose 11 per cent to $13.9 billion from $12.5 billion in 2004.
The company said it had approximately $442 million in one-time charges in its Q3, including around $300 million for repairing faulty capacitors
in business computers. The remainder was accounted for with job cuts and other restructuring costs.
In separate news last month, it was announced that Michael Dell, founder of the PC making giant, has acquired an 8.5 per cent stake in Greenville, Wisconsin-based educational supplies company, School Specialty (see above).
MSD Capital LP, a venture capital fund named after its owner’s initials, purchased 1.95 million shares in the company, according to a filing with the US Securities and Exchange Commission.