Dell to restate 4 years of results after audit ends

SAN FRANCISCO (Reuters) - Dell Inc (DELL.O) said on Thursday it would restate four years of financial results, reducing net income for the period by as much as $150 million, after a lengthy audit found that top executives sought accounting adjustments to reach quarterly performance goals.

Dell said it expects the restatements to also reduce revenue by 1 percent or less per year for the period under review.

The review "identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets," Dell said, adding that the changes "typically occurred at the close of the quarter."

Still, the changes were less drastic than what some analysts had expected.

"Most of the changes look relatively minimal to revenue and earnings per share as far as the restatement is concerned," said Brent Bracelin, an analyst at Pacific Crest Securities in Portland, Oregon.

The company said the investigation raised questions about a number of accounting matters, mainly involving adjustments to reserve and accrued liability accounts.

Dell said it did not expect the restatements to have a "material" impact on its current balance sheet or on cash flows during the restatement period, which covered fiscal 2003, 2004, 2005, 2006 and the first fiscal quarter of 2007.

Shares of Dell rose 3 percent to $26.70 in after hours trade from a close of $25.93 on Nasdaq.

(Reporting by Philipp Gollner)