Distractions For Dell Continue With Unresolved Federal Probe

DALLAS, TX.(AP) – Dell’s internal investigation into its accounting problems is over, leaving up to a $150 million dollar hit on earnings in its wake.

Now, it may be the feds’ turn. Analysts say that because federal regulators have yet to weigh in, Dell’s mistake could continue to distract the computer maker as it seeks to boost its flagging business. Dell concluded yesterday 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 50 to 150 million dollars. That’s 2 cents to 7 cents per share. Though the amounts are relatively small for a 55 billion dollar company, analysts say the admission points to the constant challenge companies face to meet earnings goals. Coming clean seemed to appease investors, who sent Dell shares up 12 cents to $26.05 in trading this afternoon.

(Copyright 2007 by The Associated Press. All Rights Reserved.)