IT services provider DXC Technology Co. (DXC) agreed to pay an $8 million penalty and tighten up its financial reporting protocols after the Securities and Exchange Commission accused the company of making “misleading disclosures” related to its financials from 2018 to 2020, the agency said on Tuesday. The SEC accused DXC of fattening its non-GAAP net income — or that measured by standards that aren’t generally accepted accounting principles — by “misclassifying tens of millions of dollars of expenses as non-GAAP adjustments for so-called transaction, separation, and integration-related (TSI) costs and improperly excluding them from its non-GAAP earnings.” The commission found that DXC violated anti-fraud and financial reporting laws.
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I still await explanation of why and how DXC lost over $5 billion in FYE 31 March 2020 on $19 billion revenues.
Seems it was a lot more than a touch of creative accountancy. Rather, there was $6.8 billion of 'goodwill impairment costs'. What the he-l does that mean? Several enormous project disasters? the punters requiring enormous hush money? Mikey with hand in till?
Since I was one of many made redundant following the results being published, I think I have a right to know
Bent it has been for a long time .
Every new VP and SVP we hired are violinists in the deck except that they all have golden parachutes ready. Look at all the LinkedIn posture.
Last week after the takeover talks were terminated someone wrote that DXC was too big to fall to $20 per share. While a week later and we're almost there.
I'm loving it. Will Mikey ask the violin players to keep playing while the titanic sinks.
Yes non GAAP means "made up sh1t". What's more if you read closely they don't even disclose what sort of spreadsheet gymnastics they did to come up with that nonsense.
Every wall street company does it though but it doesn't matter because the whole stocks thing is a giant ponzi scheme of fantasy anyway.
DXC financial results are almost always "Non GAAP"... I never understood why, and more importantly, why do stakeholders keep accepting it to be that way. Generally Accepted Accounting Principles (GAAP) exist for a reason- it makes like-for-like comparison easy if everyone plays by the same rules.
non-GAPP makes any sort of inferncing or comparison very difficult , as you can basically get away with saying anything you like.
Surprised that it took the SECC to call it out, and no shareholder or analyst till date has asked the question in any of the earnings calls.
Never ever seen a GAAP version following through either, after the non-GAAP nonsense.
https://www.morningstar.com/news/marketwatch/20230314795/sec-penalizes-dxc-technology-following-accusations-of-misleading-disclosures
Please take the "Standards of Business conduct" and "Code of ethics" mandatory trainings.
btw - these violations are before the current management's time and hence we need to go after the erstwhile management.
https://dxc.com/content/dam/dxc/projects/dxc-com/us/pdfs/about-us/leadership-and-governance/DXC-Code-of-Conduct.pdf
-_-_-_-_-_-_-_-_-_-> Who does our Code apply to?
DXC intends our Code to apply equally to everyone
working at, with, or on behalf of DXC.
This includes DXC:
• Directors
• Officers and executives
• Employees
• Subsidiaries and affiliates
• Business partners and suppliers
• Agents and other representatives
Code violations
We take all violations seriously, which is why anyone
who violates our Code, the law, or our policies may
be subject to disciplinary action, up to and including
termination, in accordance with applicable law.
Know that violations of the law can carry additional
consequences such as criminal prosecution,
imprisonment, and fines.
When are ya leaving Mikey!?!?!?!
Ideal timing or what ... that will be the excuse for no merit increases, our c@ck up, you pay the price. Surely this must bring into question Mikey and gangs suitability and ethics.
Wonder if Kenny Sharp and Mickey Salvino will take a paycut for their mistakes or be dismissed.
Both are very dodgy with the numbers and how they present the accounts, how they avoid the questions at analyst meetings.
They can afford to pay $4million each for the fine.
What about the auditors, are they colluding too? All sounds gross misconduct dismissal offences.
Not sure if they can remain in post after fiddling the figures, goes against everything in the ethics training.
Poor Shareholders who keep getting ripped off, the share price hammered, need to take action, the guys just ra-ing DXC and destroying the reputation of the company.
Wait till you see the 2021 - 2022 penalties.