Beleaguered Dell finds evidence of misconduct in internal investigation

“No news may be good news, but a sliver of news can be excruciating—at least when you’re Dell and mired in an internal investigation of accounting practices. That’s what transpired Mar. 29 when Dell provided yet another update—its fifth—on the probe that began in August. The company said it will miss an already extended deadline of Apr. 18 for filing its annual report. That’s on top of the fact that it has not officially released financial results from the second and third quarters of its fiscal year, which ended on Feb. 2,” Peter Burrows reports for BusinessWeek.

Burrows reports, “What’s more, the company said for the first time that the audit committee of its board had uncovered “evidence of misconduct.” The revelations add to the uncertainty that’s shrouded Dell since the company first announced it received inquiries from the Securities & Exchange Commission about financial controls. The picture has slowly darkened.”

“At one point, Dell said the focus was on how it accounted for ‘accruals, reserves, and other balance-sheet items.’ Some have suggested this might relate to how the company booked revenue related to service offerings and product warranties. In September, the company received federal subpoenas from the U.S. Attorney for the Southern District of New York. But the most recent announcement was the first time the company had suggested someone had knowingly acted improperly.” Burrows reports. “…It may well take months before Dell finally can disclose its findings. Until then, it may have to maintain its painful silence, leaving investors to wonder.”

Full article here.

MacDailyNews Take: You know you want it. Let the anticipation build… Wait… wait for it… Okay, 3-2-1:

Shut it down and give the money back to the shareholders!

We will dance joyfully on Dell’s grave. grin

Related articles:
Market researcher suggests that beleaguered Dell open high-end nightclubs – March 19, 2007
Beleaguered Dell slashes forecast for notebook shipments by 20-percent – March 13, 2007
BusinessWeek: Beleaguered Dell pulling out the pink slips? – March 08, 2007
Beleaguered Dell: Shut it down and give the money back to the shareholders – March 02, 2007
Beleaguered Dell’s earnings drop 33% – March 01, 2007
Beleaguered one-trick pony Dell faces unclear future – February 14, 2007
Biting words on Apple come back to haunt Dell – February 10, 2007
Dell faces investor lawsuit over ‘illegal Intel kickbacks’ – February 02, 2007
Michael Dell is no Steve Jobs – February 02, 2007
BusinessWeek: Welcome back, Michael Dell – don’t get too comfortable – February 01, 2007
Rollins out as beleaguered Dell’s CEO, replaced by Michael Dell immediately – January 31, 2007
Total eclipse of Michael Dell goes off as predicted – January 10, 2007
SEC starts formal probe of beleaguered Dell – November 16, 2006
Apple does it again: New Macbook Pros much cheaper than Dell – October 25, 2006
Dell feels the heat from Apple – October 04, 2006
The Motley Fool: ‘Intel to Dell: you guys stink’ – September 28, 2006
Beleaguered Dell’s OS-limited PC sales ‘declining rapidly below expectations’ – analyst – September 21, 2006
Fortune compares Mac vs. Dell: ‘you’ll get more for your money with Apple’ – September 11, 2006
AP: Time to think different, Apple Mac beats Dell on price, software compatibility, and more – August 23, 2006
Dell profit falls almost in half; announces informal SEC probe – August 18, 2006
Dell cannot compete with Apple’s new Mac Pro price or feature set – August 15, 2006
Bear Stearns: Apple’s new Mac Pro, Xserve pricing well below comparable Dell systems – August 09, 2006
Dell warns of earnings miss; shares plunge 15% – July 21, 2006
Survey shows big jump in consumer interest in buying Apple Mac; Dell takes steep slide – July 06, 2006
Dell warns 1Q earnings will miss mark; shares tumble – May 08, 2006
Apple passes Dell in market value – May 02, 2006
InformationWeek: Apple Mac run Mac OS X, Windows, and Linux; Dell and HP should be concerned – May 01, 2006
Dude, you got a Dell? What are you, stupid? Only Apple Macs run both Mac OS X and Windows! – April 05, 2006
Apple Mac is #1 in European education market, pushes Dell down into second place – February 03, 2006
Steve Jobs emails Apple team: Michael Dell not the best prognosticator, Apple worth more than Dell – January 16, 2006

Fortune: Michael Dell reiterates he’d love to sell Apple’s Mac OS X if only Jobs would license – January 22, 2007
PC box assemblers like Dell and others wish Apple would license Mac OS X – August 31, 2006
Michael Dell say’s he’d be happy to sell Apple’s Mac OS X if Steve Jobs decides to license – June 16, 2005
Fortune: PC makers realize Mac OS X is superior to Windows, they’re wooing Steve Jobs for licenses – May 26, 2005

53 Comments

  1. Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell Beleaguered Dell…

    I would only be surprised if they found evidence of competence.

    -c

    MW: ‘help’ (!)

  2. … let’s maybe reconsider the whole “dancing on one’s grave” stuff, fellas. The rhetoric-ometer is redlining a bit. I’ll be the last to admit that Dell is an innovator of any magnitude, but let’s possibly consider a “quietly confident” approach when it comes to the demise of the competition.

  3. Before we all get carried away, let’s think about the innocent employees who will suffer if/when Dell does go down the pan. These are people at the bottom of the ladder. A lot of them decent and hard working (maybe like us). If they lose their jobs because of the actions of a few cretins at the top of the tree, it will lead to divorces, broken homes, unpaid mortgages etc.

    Yes it’s a laugh watching Michael Dell squirm but don’t for one moment think that a rich bastard like him will suffer anything like some of the people who currently depend on him for their livelihoods should the company disappear.

    Sermon over.

  4. It’s dancing on the grave of the corporation, not the human being, and I’m sure they are many who will happily join the chorus line at Dell, Inc.’s tomb, if it gets put down. Or supply the music. Or the booze….

  5. @Dirty Pierre le Punk,

    I agree, I don’t like to be too shrill either.

    I have said the same about MS’ worker bees in

    the past, but the market must evolve. I am surely

    prepared to see the dark ages of computing end.

  6. Pierre,

    For the employees, the news is acutally worse that what is shown. Dell also announced that they will not be issuing stock options for the employees and the ones that have been issued are being held back from sale.

    Dell recently had some layoffs (IIRC). The company looks like it really is in a lot of trouble.

    On another note…

    Last week, Goldman Sachs upgraded Dell to buy. So, with the news, what does Goldman Sachs do? Do they update their buy rating? nope, they tell people to buy on the “dips”. To me, that doesn’t sound like very sound advice. Dell has been having a lot of trouble, now they have financial irragularities and Sachs tells people to buy. Hmm… maybe they’re holding a lot of stock and want to get rid if it without loosing too much.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.