“Dell Inc. said on Thursday it would restate four years of financial results, reducing net income for the period by as much as $150 million, after a lengthy audit found that top executives sought accounting adjustments to reach quarterly performance goals,” Reuters reports.
“Dell, the world’s second-largest personal computer maker, still faces a U.S. Securities and Exchange Commission investigation, now in its second year, but legal experts said the audit would likely address most of the SEC’s concerns,” Reuters reports.
“The review ‘identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets,’ Dell said, adding that the changes ‘typically occurred at the close of the quarter,'” Reuters reports.
MacDailyNews Take: In other words: Beleaguered Dell’s executives lied about and faked numbers so that they could hit their performance goals.
Reuters continues, “The company said the investigation raised questions about a number of accounting matters, mainly involving adjustments to reserve and accrued liability accounts. It said remedial measures, including firings, were being taken… Dell said it expected to conclude that control deficiencies identified by auditors ‘constituted material weaknesses in the company’s internal control over financial reporting.'”
MacDailyNews Take: It also constitutes a long-term material lack of ethics and morals inside beleaguered Dell.
Reuters continues, “The audit’s conclusion comes as Dell, which last year lost the top PC market-share ranking to Hewlett-Packard Co., is revamping its consumer unit and cutting 10 percent of the work force to focus on its fastest-growing and most-profitable businesses.”
MacDailyNews Take: Which would be what exactly, crap virtually useless PCs sold in Wal-Mart? Thick, ugly, OS-limited laptops? Towers festooned with ridiculous, superfluous neon lights? No, really, what’s beleaguered Dell focusing on? Perhaps Mikey ought to focus on begging Steve Jobs for Mac OS X and, after Jobs laughs in his face… drum roll, please: selling the company and giving the money back to the shareholders.
Full article here.