Breaking Down Dell's Earnings Results

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Aug. 15 (Bloomberg) -- Dell reported fiscal second-quarter sales that topped analysts’ estimates ahead of a vote next month on its founder’s bid for the computer maker, lending some credence to arguments that the company could recover without a leveraged buyout. Cory Johnson reports on Bloomberg Television's "Street Smart." (Source: Bloomberg)

We want to go out to cory johnson right now, who is covering dell earnings for us.

Those numbers just crossed.

Walk us through it.

Things continue to deteriorate at dell.

I want to give you the headline numbers.

The revenue number is basically flat the last year.

$14.5 billion.

It may be a little bit up.

This company has really seen its pc business fall apart.

It has done a lot of acquisitions.

Earnings per share, the adjusted earnings per share , $.24. it was 42% -- $.42 last year.

A significant decline.

The reason these results matter a lot is because they are either going to bolster the case of michael dell or karo icon.

-- carl icahn.

Michael dell may be trying stack the deck in terms of putting information out there before some important dates.

But again, on the revenue side, things are not so much worse than where we were a year ago.

What do you make of the fact that the margins at dell right now are down 18.5%? again, companies do not have a lot of control over cost than any individual order.

Carl icahn might be poking at this to look at cost.

Dell has a lot of choices about how they are going to accelerate depreciation and take certain cost, capitalize other expenses, not capitalize expenses to make a given quarter look bad.

I am not accusing them of gimmickry.

There are a lot of legal things you can do to make the numbers look a certain way in any given quarter.

In this case, michael dell has an incentive to make the numbers look worse.

No guidance here.

That has come back to haunt them.

All right, cory -- let me throw one more data point out there.

They are not going to do a conference call, so the numbers have to stand on their own.

Cory johnson, thank you so much.

Let's get back to our round up stories.

This text has been automatically generated. It may not be 100% accurate.

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