Dell on Tuesday filed restated results for fiscal years 2003, 2004, 2005, 2006 and the first quarter of fiscal 2007 with the SEC, which resulted in a decline of less than 1% in profit and revenue from prior totals, or a loss of $92M ($0.03/share) and $359M from previously reported profits and sales, respectively. In August, the company had said the restatements could result in a $50M-$150M reduction in net income. The restatements follow a year-long internal investigation that found employees manipulated the PC-maker's financial results to meet earnings goals, sometimes at the request of senior officials. Michael Dell revamped the management team when he returned as CEO in January. The company believes the restatements should bring it back into compliance with Nasdaq listing requirements. It plans to resume its stock buyback program, which was suspended in September 2006 pending the outcome of the probe, after it releases third-quarter results November 29. Investigations by the SEC, which began looking into the accounting in 2005, and the Justice Department are ongoing.
Commentary: Goldman Adds Dell To Buy List, Bumping HP • Michael Dell’s Role in Accounting Scandal Still Unclear • Wall Street Downplays Dell’s Wayward Bookkeeping
Stocks to watch: DELL. Competitors: HPQ, IBM, GTW. ETFs: IAH, PRFQ, ROM
Earnings call transcript: Dell Q2 2007
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