“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.
Mac-nugget,
I’m not sure why it is that you so consistently get things wrong. I wonder if you may be stupid. Dell is doing very poorly, and this just fuel to the fire. Deal with it!
“Another word would be delusional.”
Don’t forget pointless reply. Two more words.
When the share price and market cap get low enough, Apple should buy Dell, shut it down, and give the money back to shareholders. They can include Apple shareholders and make it a special dividend.
Zune Tang is right for once, there’s nothing to see here. This is normal corporate stuff. Schadenfreude is as ugly as it is hard to spell.
What Dell should do is spin off a subsidiary, sort of the computer version of Saturn, which in turn buys Ubuntu and adopt Apple’s business model of integrated systems. But don’t worry, they won’t.
Don’t forget pointless reply. Two more words.
Don’t forget equally pointless reply. Three more words.
“1 % error isn’t significant in terms of the effect on shareholders.”
lets pretend that doesn’t matter for now.
as a philosopher i am bothered by what it appears nobody else cares about.
most companies can’t even spell ethics, let alone think about it. saying a “1% error” is a lot like calling murdered people “collateral damage” or the destruction of an entire culture “an unfortunate side effect of war.”
this is simple dishonesty. why does that bother so few people?
MW: maybe only us philosophers care about these moral “cases.”
damn, a group of people that are actually worse then lawers
Death to lawers too.
Jimbo von Winskinheimer. I have to laugh everytime I see that name.
Don’t worry about Dell employees if the company has to shut down. There are new jobs opening up in the mining industry almost every day.