Restated Dell profits down $92 million |
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Tue, 30 Oct 2007 23:07
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DALLAS (AP) - Dell Inc. reduced profits by $92 million in restated earnings filed with federal regulators on Tuesday.The restated earnings were first announced two months ago after a yearlong internal investigation found employees had misled auditors and manipulated results to meet performance goals for more than four years.The affected earnings reports covered fiscal years 2003 through 2006, as well as the first quarter of fiscal 2007.The profit cut is equal to 3 cents per share for the total period, when the Round Rock company's net income was more than $12 billion.Dell spent $205 million on the investigation, spokesman David Frink said.'We feel as though we have completed this chapter in Dell's business and we are going to be squarely focused on customers and strategy to drive shareholder value,' Frink said.An SEC probe, however, remains unresolved. Frink said it was unclear when that might end.Dell also faces shareholder lawsuits. And federal prosecutors in New York have subpoenaed documents on the company's financial reporting since 2002.Tuesday's filings should bring Dell back into compliance with the Nasdaq's listing requirements, Frink added.Dell continues to struggle against competitors like Hewlett-Packard Co. and others. Last fall, overtook Dell for the No. 1 spot in PC sales.Dell has countered by striking retail deals around the world, most recently with Staples Inc.Frink said Dell plans to resume its share repurchase program shortly after it announces third-quarter results Nov. 29.Dell shares briefly hit a 52-week high of $29.92 in trading Monday after a Goldman Sachs analyst said the company's stock price is poised to rise on improved margins and a number of partnerships.Shares closed up 33 cents Tuesday at $29.80 and rose another 72 cents to $30.52 in after-hours trading.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Dell files past due financial reports 