The Texas economy is one of the most robust in the world. Wildly profitable companies and ingenious entrepreneurs call this state home, and what happens here influences businesses around the nation. Here’s a slice of the profits, losses, big deals, and backroom decisions happening across Tex
The Depths of Dell
Dell’s stock hit a three-year low this week, and shares of the Round Rock computer maker have declined by more than thirty percent so far this year, according to the Austin Business Journal. The company’s profits also took a dive in the second quarter, dropping off by eighteen percent, and revenue decreased 7.6 percent. Last month the Austin Business Journal reported that Dell is planning “an unspecified number of job cuts” at its headquarters.
The Bottom Line: CEO Michael Dell is downplaying the potential impact of Microsoft’s new Surface tablet, its first foray into the hardware market. “I think the impact will be limited, given the number of units they expect to ship,” Dell told PC World earlier this week.
Boomer or Buster?
It’s game on for Dallas-based Dave and Buster’s, as the arcade chain is forecasting $123.8 million in proceeds from its anticipated IPO this fall. Monday’s projection is lower than its previous figure of $150 million, the Associated Press reported. The company “plans to use the offering’s net proceeds to lower its debt by about $80 million and to pay related premiums, interest and expenses.” Its new NASDAQ ticker symbol will be “ PLAY.”
The Bottom Line: Dave and Buster’s was publicly traded from 1997 to 2006 before changing ownership several times, according to the Los Angeles Times. While individual stores did fairly well in 2011 — netting an average of $9.8 million apiece for locations open more than a year — “the company suffered net losses in each of the past three fiscal years,” the newspaper reports.
Antonio Swad, owner and founder of the Dallas-based pizza chain Pizza Patron, was featured this week in a Bloomberg Businessweek column about the growing number of restaurants marketing to Hispanic customers. The company is set