“ We are going to have to get off their drug … ” is how former Dell CEO Kevin Rollins key Dell ’s dependency on payments from Intel to forgather their financial targets in subject matter to Michael Dell from 2004,released by the SEC .
TheSEC ’s chargescenter around an agreement Dell had with Intel years ago not to utilize AMD chips in central for “ big exclusivity payments , ” which Dell became seriously dependent on :
The SEC aver that Dell did not disclose to investors large exclusivity payments the company received from Intel Corporation to not use central processing unit of measurement ( CPUs ) manufactured by Intel ’s main competitor . It was these payments rather than the ship’s company ’s direction and operations that tolerate Dell to fit its profits targets . After Intel foreshorten these payments , Dell again misled investors by not let on the truthful reason behind the company ’s decreased profitableness .
The NYT read that other messages “ talk about Dell needing to beg Intel for money to encounter quarterly goals . ”
The result ? A $ 100 million penalisation for Dell , and $ 4 million for Michael Dell himself . Ouch . [ Bits , SEC ]
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