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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