Dell finally restates its accounts
Computer manufacturer's net income is slashed by $92m in re-stated filings
After a tumultuous two years, Dell has finally completed its internal
investigations of its accounts and restated results from 2003 to the first
quarter of 2007.
The internal investigation, which was completed in August, found that senior
executives had used ‘accounting tricks’ to inflate figures and so meet quarterly
performance targets.
During this period, Dell cut its net income by $92m – from a previously
reported net income of $12bn.
Earnings per share were reported $0.03 per share, down from the previously
stated $4.78, Computerworld.com reported.
The company also reduced revenue by $359m from a previously reported
$196.2bn.
The company had faced delisting by the SEC several times for failing to file
its earnings reports on time. The SEC is still investigating Dell for periods
before 2006.
Further reading:
Four years of Dell results to be
restated
Dell to delay quarterly filings
Dell founder drawn into accounting scandal