Feeds

Probe into Dell accounting widens

Dude, you're not getting a filing

Eight steps to building an HP BladeSystem

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. ®

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.