Dell has delayed posting its second quarter results
because of an ongoing investigation by the US Securities and
Exchange Commission into past results.
The company said it is unable to file the results because “of
questions raised in connection with the previously announced
informal investigation by the Securities and Exchange Commission
(SEC) into certain accounting and financial reporting matters, and
the subsequently initiated independent investigation by the Dell
audit committee of its board of directors”.
Dell said it planned to file the report as soon as possible. The
SEC started an investigation into the company's results last
month.
Dell said the investigations have “indicated the possibility of
mis-statements 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”.
Dell said it is working with the Dell audit committee and with
its independent auditors to determine if any restatements of prior
period financial reports will be necessary.
"We have not yet reached any conclusion on materiality as to
these issues," said Don Carty, chairman of the audit committee
reviewing the matter. "We are continuing to investigate the matter
fully," Carty added.
The SEC requests for information have been followed by a similar
request from the US attorney for the Southern District of New York,
who has subpoenaed documents related to the company’s financial
reporting from 2002 to the present.
Dell chairman Michael Dell said, "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, and
we will take any appropriate remedial or corrective actions to
address any problems."
Dell said, In light of these developments, the company has
suspended its ongoing share repurchase programme until further
notice.
In addition, given the delay in its 10-Q results filing, the
company has postponed the meeting with financial analysts that was
to be held tomorrow (Wednesday 13 September).
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