Dell’s Net Profit Drops 50% with SEC Investigation In the Works
Dell recently announced a heavy ~50% fall in net profit, which though significant, is only “slightly” greater than the 30% it forecasted internally and within the average forecasts of most analysts. This fall is attributed to greater competitive pressures and “more aggresive pricing in a slowing market”.
More worryingly (at least to the stock market) is news of an informal SEC investigation on how Dell’s handles its accounting. Further details on the investigation have not been revealed.
These two pieces of news come in the wake of a large-scale battery recall involving 4.1 million Sony-manufactured notebook batteries - though somewhat compensated by news that Dell could possibly begin pumping out AMD-based notebooks by Q4.
[News via Reuters]
1 Comment
RSS feed for comments on this post. TrackBack URI
SEC Investigation of Dell’s Finances Intensifies | House of Dell said,
Pingback • September 14, 2006 @ 2:33 am
[…] A ~50% fall in net profit, and a US Securities and Exchange Commission (SEC) investigation is usually more than enough to make a corporate executive quake in his/her shoes. But it seems the Powers That Be aren’t done with Dell’s management just yet. […]