DALLAS (AP):

Computer maker Dell Inc. said yesterday it will reduce more than four years' worth of earnings by up to US$150 million after an internal probe found the company misled its auditors and manipulated results to meet performance goals.

The struggling company said its net income for the restatement period will be reduced by between US$50 million and US$150 million, or two cents to seven cents per share.

The largest reductions in quarterly profits were expected to be in the first quarter of fiscal 2003 and the second quarter of fiscal 2004, each lowered between 10 per cent and 13 per cent.

It will restate all of fiscal 2003 through 2006 and the first quarter of fiscal 2007, in total.

The investigation, which began in August 2006 and evaluated more than five million documents, "identified evidence that certain adjustments appear to have been motivated by the objective of attaining financial targets," Dell said.

Tough measures

Round Rock-based Dell added that unspecified terminations, reassignments, reprimands, increased supervision, training and financial penalties either have or will be taken as a result.

"We are committed to achieving and maintaining a strong control environment, highethical standards and financial reporting integrity," Chairman and Chief Executive Michael Dell said in a statement. "This commitment will be communicated to every Dell employee and external stakeholder. It is accompanied by renewed management focus on decision making and processes intended to drive long-term shareholder value."