Dell to delay filings, investigation finds misconduct

Dell said Thursday its audit committee found evidence of misconduct and errors in the company's accounting; it will delay filing annual earnings with the SEC

An internal investigation at Dell has found evidence of misconduct and accounting errors, forcing the company to delay filing its annual earnings report with stock market regulators, it said Thursday after the U.S. stock market closed.

Once the world's largest sellers of notebook and desktop PCs, Dell has stumbled in recent quarters, watching profits fall as the company struggled with an accounting investigation by the U.S. Securities and Exchange Commission (SEC). In January, founder Michael Dell ousted his successor Kevin Rollins and returned as CEO in an attempt to reverse the company's fortunes.

Now Michael Dell will face an even tougher challenge. One of his first moves was to win a reprieve when the Nasdaq stock exchange threatened to de-list the company's stock because it had missed three deadlines for filing its quarterly earnings reports with the SEC. The company now says it will miss the extended date, as well. Dell will delay filing its Form 10-K for the fiscal year ending Feb. 2 beyond the original deadline of April 3 and the extended deadline of April 18.

Dell did not say what sort of misconduct it had found or who had committed it. In a brief statement, the company said only that an audit committee it had assigned to investigate the SEC charges was not yet finished with its task, but had "identified a number of accounting errors, evidence of misconduct, and deficiencies in the financial control environment."

Dell management has not yet determined whether prior earnings will have to be restated to correct those errors, the statement said.

One hint to the nature of the misconduct may come from a lawsuit filed Jan. 31 by shareholders, alleging that a small circle of executives arranged for Dell to accept secret payments from Intel in exchange for using only Intel processors in Dell PCs. The lawsuit also said the managers had used inside information to reap multimillion dollar profits by selling stock options at auspicious times. The lawsuit was filed in U.S. District Court in Austin, Texas.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Ben Ames

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?