Feeds

Probe into Dell accounting widens

Dude, you're not getting a filing

Top 5 reasons to deploy VMware with Tegile

Stumbling computer maker Dell has been forced to delay a second quarter financial report and to put its stock repurchase program on hold as it deals with federal and state accounting probes.

Dell last month revealed that the US Securities and Exchange Commission (SEC) had started looking into its past financial statements. The company has kicked off its own internal audit to complement the Feds' investigation. Dell has delayed the filing of its second quarter Form 10-Q filing as a result but vowed to file the paperwork "as soon as possible." Dell has also halted its share repurchase program.

"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 the company's previously reported financial results," Dell said. "The company is working with the Audit Committee and with the company's independent auditors to determine if any restatements of prior period financial reports will be necessary."

The US attorney's office for the Southern District of New York has also chipped in with its own informal probe of Dell and has requested documents from the vendor for periods stretching from 2002 to the present.

"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," Chairman Michael Dell said.

Merrill Lynch analyst Richard Farmer characterized Dell's disclosures as "sparse," in a research note. "The accounting uncertainty is an additional overhang for the stock, though the company has not provided sufficient information for us to judge materiality," Farmer wrote.

Dell's stock has been in a massive slump as the company has struggled to deal with sliding PC and server sales. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.