Dell delays quarterly report due to SEC probe

Dell, on Monday, said in a statement it will delay the 10-Q filing for the quarter ended Aug. 4 because of questions raised by the "informal" SEC investigation "into certain accounting and financial reporting matters" and the subsequent investigation by Dell's audit committee of its board.

Dell's Chief Financial Officer Jim Schneider said in August that the company didn't expect the matter to have a material effect on its finances. However, audit committee chairman Don Carty said Monday, "We have not yet reached any conclusion on materiality as to these issues."

In addition, the U.S. Attorney for the southern district of New York has begun requesting information. It has subpoened documents related to Dell's financial reporting from 2002 to the present, the company said.

Dell's move indicates the situation is more "ominous" than what it had disclosed in August and that it doesn't bode well for management, Sanford C. Bernstein analyst Toni Sacconaghi wrote in a research note Monday.

Dell said the SEC and board investigations "have indicated the possibility of misstatements in prior period financial reports, including issues relating to accruals, reserves and other balance sheet items that may affect the company's previously reported financial results."

View: Full Article @ CNET News.com

Report a problem with article
Previous Story

DOJ Investigating HP Press Leak Probe

Next Story

Threats, Adware and Phising, Growing in Numbers

0 Comments

Commenting is disabled on this article.

There are no comments