Feeds

Uncooking the books costs Dell 'only' $92m

Let the buybacks begin

Intelligent flash storage arrays

Dell today presented the Securities and Exchange Commission (SEC) with cleaned-up accounts for the years 2003-2006 and the first quarter in 2007. The restatements show that Dell earned $92m less net income than it had previously stated in earlier filings.

In August, the company said that it might have to write down up $50m-$150m to put right "accounting errors and irregularities". Unnamed senior executives were blamed for allowing, or asking for, the books to be cooked to show that quarterly targets were met.

In the context of Dell's $12bn net income during the period, the writedown is a drop in the ocean. But what does it say for the company culture at the time, that such chicanery could be allowed to happen?

In August, Dell said it had fired or retrained or reassigned or reprimanded those involved. It named no names.

In good news for shareholders, Dell today said it is to resume stock buybacks. In a bullish research note yesterday, Goldman Sachs analysts predicted that the company would spend up to $8bn on the buyback, which should help its tax raise. The double whammy means that Dell needs to deliver less than seven per cent revenue growth to get 20 per cent earnings growth.

Goldman Sachs also reckons that Dell's new retail channel will add $500m-$1bn in revenue over the next year (some margin of error, there). In recent weeks, Dell signed up Wal-Mart and Staples in the US; more retailers are on their way, Goldman Sachs says. Finally, the woeful DRAM market means that Dell's gross margins will be higher than previously anticipated. ®

Beginner's guide to SSL certificates

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
The total economic impact of Druva inSync
Examining the ROI enterprises may realize by implementing inSync, as they look to improve backup and recovery of endpoint data in a cost-effective manner.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.