Dell Will Restate

Updated from 4:34 p.m. EDT

Dell(DELL) will restate more than four years of financial reports after an in-house probe revealed evidence of adjusting accounts in order to meet financial targets.

The PC maker said it expects the restatements to knock $50 million to $150 million off the restatement period, which comprises fiscal years 2003 to 2006 and the first quarter of fiscal 2007.

Dell expects that net revenue for each annual period will be cut by less than 1% of the previously reported revenue for the period.

Dell said the adjustments aren't expected to materially affect its balance sheet or cash flows during the restatement period.

"As a result of the investigation issues, as well as other issues separately identified by management, current management has concluded the company did not maintain an effective control environment, including a tone and control consciousness that consistently emphasized strict adherence to Generally Accepted Accounting Principles (GAAP), " Dell said in a press release. "In addition, current management has concluded that the company did not maintain effective controls over the period-end reporting process, including controls with respect to the review, supervision and monitoring of accounting operations."

Dell said it will take several actions to rectify its reporting structure, including reorganizing its "finance function," segregating accounting and financial reporting responsibility from planning and forecasting, to ensure increased independence. The position of chief accounting officer has been strengthened, Dell said, making it directly responsible for all accounting and financial reporting functions worldwide.

Shares of Dell were recently up 54 cents, or 2.1%, to $26.47.