Dell to Restate Years' Worth of Financial Results
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.
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