Dell admits to four years of fuzzy math

Ruh oh. As if embattled PC vendor Dell wasn't in enough trouble already, it now has a bona fide financial scandal on its hands. We first heard rumblings of funny numbers on the books back in March but now, the company has actually admitted to wrongdoing, stating that "senior management ... regularly falsified quarterly returns from 2003 through 2006 to create the appearance that the company had met sales targets." In its filing with the SEC, the company disclosed that "account balances were reviewed, sometimes at the request of senior executives, with the goal of seeking adjustments so that quarterly objectives could be met." The company will now be forced to adjust its quarterly numbers, which could reduce the company's net income by as much as $150 million, or 10 to 13 percent for Q1 2003 and Q2 2004. The company's CFO has stated that "disciplinary action had been taken" and said the company is "comfortable we have taken steps necessary to make sure this never happens at Dell again." Surprisingly, the company's stock doesn't seem to have taken a hit just yet, though I suspect this won't be the last we'll hear of this one.

For more on the financial scandal:
- see this New York Times article