Dell delays filing quarterly report due to probe 2 hours, 39 minutes ago
Computer maker Dell Inc. (Nasdaq:DELL - news) said on Monday it has suspended share repurchases and is delaying the filing of its latest quarterly report with regulators amid an expanded government accounting probe.
Shares of Dell fell 4.2 percent to $20.75 in pre-open trading after the company also said in a statement that it will postpone a planned meeting on Wednesday with Wall Street analysts in New York.
Dell said it is unable to file its 10-Q report for the second quarter ended August 4 because of questions raised in connection with the previously announced informal probe of the Round Rock, Texas-based company's accounting by the U.S. Securities and Exchange Commission.
Requests by the SEC for information have been joined by a similar request from the U.S. Attorney for the Southern District of New York, who has subpoenaed documents related to the company's financial reporting from 2002 to the present.
Last month, the company disclosed the existence of the SEC request for enough documents to "fill up a truck" but made no mention of the U.S. Attorney's subpoena. The informal probe began in August 2005 but was only revealed by Dell last month.
The 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 Dell's previously reported results.
Dell said last month it did not believe the issues have had or will have any "material impact" on its financial position. It did not disclose the matter earlier because "we are under no obligation to disclose it," spokesman Jess Blackburn had said.
"We have not yet reached any conclusion on materiality as to these issues," said Don Carty, chairman of the Dell board of directors' audit committee, which is reviewing the matter. "We are continuing to investigate the matter fully," Carty added.
"We are fully cooperating with the investigations and working to resolve any and all issues raised in connection with those investigations as quickly as possible," Chairman and founder Michael Dell said in a statement.
Dell said it will be holding a scheduled Technology Day on Tuesday, September 12, in New York showcasing its latest products and services.
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