Dell said Thursday it will re-state financial statements spanning more than four years and admitted that senior executives either knew of or requested the manipulation of its results to meet quarterly profit and sales targets.
The PC maker said it will re-state financial statements for fiscal years 2003 to 2006 and the first quarter of 2007 as a result of the findings made during a year-long probe by an independent audit committee.
"The investigation identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets," Dell (Quote) said in its release. "The activities typically occurred at the close of a quarter."
The investigation also found that some Dell employees did not provide complete information to corporate headquarters and, in a number of instances, provided purposefully incorrect or incomplete information to internal and external auditors.
In August 2006, the Securities and Exchange Commission requested information related to Dell's revenue recognition and other accounting and financial reporting matters as part of a continuing investigation launched in August 2005.
Along with restating their results, Dell said it is working with the audit committee to develop a detailed plan to implement remedial actions and procedures to prevent future accounting discrepancies.
"We are committed to achieving and maintaining a strong control environment, high ethical standards and financial reporting integrity," CEO Michael Dell said in the release. "This commitment will be communicated to every Dell employee and external stakeholder. It is accompanied by renewed management focus on decision-making and processes intended to drive long-term shareholder value."