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Dell joins Novell in facing Nasdaq delisting

Antony Savvas

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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