Dell said last night it would restate four years of financial results after a lengthy audit found that top executives sought accounting adjustments to reach quarterly performance goals.
The restatement will reduce net income for the period by as much as $150 million but 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 US 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.
Dell said it expects the restatements to also reduce revenue by 1 per cent or less per year for the period under review. Shares of Dell rose 1.6 per cent 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".
The company said the investigation raised questions about a number of accounting matters, mainly involving adjustments to reserve and accrued liability accounts. It said remedial measures, including firings, were being taken.
Dell, based in Round Rock, Texas, said it did not expect the restatements to have a "material" impact on its current balance sheet or on cash flows during the restatement period, which covered fiscal 2003, 2004, 2005, 2006 and the first fiscal quarter of 2007.