Monday, 20 August 2007

More Accounting Woes For Dell

Dell Inc., the world’s second largest PC maker has finished its internal investigation into its accounting problems and looks like the financial woes will continue to haunt the company for some more time.

Dell had last week concluded that that some employees had misled its auditors and manipulated results to meet performance goals for more than four years.

As a result, Dell said net income for all of fiscal 2003 through 2006 and the first quarter of fiscal 2007 would be reduced by USD 50 million to USD 150 million.

The direct sales model that Dell pioneered was very successful and made Dell a household name globally. However in the absence of company founder Michael Dell, things went bad the company and Dell came back as the CEO early this year.

Of late Dell has struggled against competityioon such as HP, Compaq, Lenovo and Acer Exploiting its shop presence to full extent, HP, Dell’s no. 1 rival globally, grabbed the top position.

In a bid to boost the sales of its systems, Dell began retailing its systems in the US, Japan, UK and India.