Hi-ho the Merry-oh, the Financier in the Dell
My daughter is 13 going on 23. She’s testing he boundries of her privilages; and its making me old. I am constantly telling her, there are consequences to your actions. Some are good. Others are not…
Speaking of consequences, it looks as though Dell is in for some nasty consequences. Last week, Dell announced that they are going to be restating earnings from 2003 to 2006. The word on the street is that the the book cooking was minor, but that it didn’t keep a number of heads from rolling; and the SEC has yet to chime in…
DELL, once one of the biggest and best in the personal computer industry, has admitted that senior company executives made false accounting entries to hide poor sales and company performance. Heads have rolled, Michael Dell is hinting at a company shake-up.
The company has admitted manipulation of figures covering the fiscal years 2003 to 2006 and the first quarter of 2007, and will now revise its financial statements for those The expected impact is up to $150M USD. Its not known yet what this will mean for Dell and their future, though Dell insists that there will be no material impact to Q2 2007. I’m doubtful, however, and am wondering how Wall Street and the US economy will react.
Every news bit I’ve seen on this is trying to play down the whole issue, or at least appears to. I’m not certain if those politics are coming from Dell, the reporting rag, or is the writer’s own hopes trying to subtelly, or unconsciously help the situation along (print has a lot of influcential power).
Some analysts have questioned the impact of these revelations on Dell’s future, and the company has said there will be no material impact on second-quarter 2007 results.