From 2003 to 2006 senior management of Dell computers falsely reported their quarterly sale reports to give the impression that they met their sales targets. The false quarterly sales reports resulted in inflated earnings for Dell. Dell said that it will “restate its net income for the period by $50 million to $150 million.” The amounts that Dell will restate will be largest for the years 2003 and 2004, which will be 10 to 13 percent.

The public filing reads:

“Accounting adjustments were viewed at times as an acceptable device to compensate for earnings shortfalls that could not be closed through operational means. Often these adjustments were several hundred thousand or several million dollars.”

The current management at Dell said that they are comfortable with the steps they have taken to ensure that this won’t happen again. Dell’s senior chief financial advisor, Donald, J. Carty, was asked if any of the senior managers who were involved were still employed by Dell. He didn’t answer the questions directly, but stated that “disciplinary action had been taken.”

[via NYTimes]

Tags: Computers, Dell, Dell Laptop, Dell Computers, Hardware, Laptops, Technology

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