Dell is the second major IT company this week to face a
delisting from the Nasdaq stock exchange for not filing its
quarterly results on time.
Novell faces a Nasdaq delisting because its results have become
bogged down as a result of an investigation at the company over
stock option awards that may have broken accounting rules.
Dell said it had expected that Nasdaq would issue the delisting
threat in response to the late filing of the results, and that it
had requested a meeting with the stock exchange’s listing
panel.
Pending a decision by the panel, Dell’s shares will remain
listed on the exchange, like Novell’s, which has also asked for a
hearing.
Dell said, “As previously announced, Dell is unable to file its
Form 10-Q for the quarterly period ended 4 August, because of
questions raised in connection with an informal investigation by
the US Securities and Exchange Commission (SEC) into certain
accounting and financial reporting matters, and the subsequently
initiated independent investigation by the audit committee of its
board of directors.”
Dell added, “The SEC requests for information were joined by a
similar request from the United States Attorney for the Southern
District of New York, who has subpoenaed documents related to the
company’s financial reporting from 2002 to the present. The company
said it will file the report as soon as possible.”
Dell previously said 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”.
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.
Earlier this month, 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.”
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