Dell to Restate Years' Worth of Financial Results Computer maker Dell will have to restate more than four years of financial results. An investigation found that accounting tricks were used to meet performance targets. The restatement will cut reported profit by as much as $150 million.

Dell to Restate Years' Worth of Financial Results

Dell to Restate Years' Worth of Financial Results

  • Download
  • <iframe src="https://www.npr.org/player/embed/12866099/12866100" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

Computer maker Dell will have to restate more than four years of financial results. An investigation found that accounting tricks were used to meet performance targets. The restatement will cut reported profit by as much as $150 million.

RENEE MONTAGNE, host:

We begin today with a black eye for the world's second biggest PC maker.

Dell said yesterday it would have to restate more than four years of financial results. An investigation found that a senior executive, so far unnamed, used accounting tricks to meet quarterly performance targets. The company has been struggling to regain its position as the world's biggest computer manufacturer since Hewlett-Packard overtook Dell recently in the number one spot.

The restatement of financial results will reduce Dell's reported profit by as much as $150 million. That's just a fraction of the company's net income of about $12 billion over the four-year period. But Dell said the number of errors makes them serious. The Securities and Exchange Commission is also investigating the company's behavior.

Copyright © 2007 NPR. All rights reserved. Visit our website terms of use and permissions pages at www.npr.org for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.