Dell To Restate 4 Years Of Results After Audit Ends

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. The restatement, affecting a small fraction of the billions of dollars Dell earned in the period, was greeted with relief by some analysts who had expected more serious consequences.

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. Most of the changes look relatively minimal to revenue and earnings per share as far as the restatement is concerned, said Brent Bracelin, an analyst at Pacific Crest Securities in Portland, Oregon.

Dell said it expects the restatements to also reduce revenue by 1 percent or less per year for the period under review. Shares of Dell rose 1.6 percent to $26.35 in after-hours trading from a close of $25.93 on Nasdaq.

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.

Dell said it expected a cumulative reduction to net income for the restatement period of $50 million to $150 million and a reduction in earnings per share for the period of 2 cents to 7 cents. Dell reported net income of more than $12 billion in the restatement period.