Dell Inc. (DELL) revealed that it is delaying the filing of
the Form 10-Q
World software computer systems manufacturer Dell Inc. (DELL)
revealed that it is delaying the filing of the Form 10-Q for
its recently completed second quarter due to earlier disclosed
informal investigation by the U.S. Securities and Exchange Commission,
together with an internal search, into certain accounting and
finance analysis reporting matters of the company.
The company also revealed
that the U.S. Attorney for the Southern District of New York
has subpoenaed documents related to Dell's financial reporting
from 2002 to the present. Resulted by these events, the company
suspended its ongoing share buyback program until further notice.
However, the company said it intends to file the report as soon
Company unable file form connection with the SEC investigation
The Round Rock, Texas-based company noted that it is unable
to file the Form as questions were raised in connection with
the SEC investigation and the subsequently initiated independent
investigation by the Audit Committee of its board of directors.
Dell received notice from the SEC
While releasing second quarter results on August 17, the company
had noted that in August 2005 Dell received notice from the
SEC about the informal investigation of the company. The notice
stated that the investigation is not an indication that any
violations of law have occurred. The SEC then had requested
information relating to revenue recognition and other accounting
and financial reporting matters for certain past fiscal years,
and Dell has been cooperating.
Issues have material impact on its financial position
In the due course, the company discovered information that raises
potential issues relating to certain periods prior to fiscal
2006. Even though the company believed that these issues have
had or would have any material impact on its financial position
or the reported results of operations for the relevant years,
the company's audit committee, upon the recommendation of management,
initiated an independent investigation.
The investigations have pointed out the possibility that the
company misstated in prior period financial reports, including
issues relating to accruals, reserves and other balance sheet
items that may affect the company's earlier posted finance
analysis results. In order to determine whether any restatements
of prior period financial reports would be necessary, Dell noted
that, the company is working with its independent auditors and
the Audit Committee.
Don Carty, chairman of the Audit Committee reviewing the matter,
commented, We have not yet reached any conclusion on materiality
as to these issues. We are continuing to investigate the matter
Dell has suspended its ongoing share
In addition, Dell has suspended its ongoing share repurchase
program until further notice in the wake of these negative developments.
Further, given the delay in its 10-Q filing, the company has
postponed the meeting with analysts that was to be held on Wednesday,
September 13 and said it would reschedule it to a later date.
However, Dell would be holding its Technology Day on Tuesday,
September 12, in New York showcasing its latest products and
The company pointed that all inquiries regarding the latest
developments should be directed
to Lynn Tyson, Vice President, Investor Relations and Global
Among the rivals, Hewlett-Packard Co. (HPQ) is also facing an
investigation by the California state investigators into leaks
finance analysis of confidential
information from its board of directors. The California state
investigators, who are probing into how the company traced phone
records of HP directors as well as nine reporters as stated
by HP, currently believes the involvement of criminal activity
in the methods used to search the records. The beginning of
the scandal was in early 2005, when the details of the HP board's
discussions about former CEO Fiorina, who was thrown out in
February 2005, was leaked to the media.
Dell in mid August voluntarily recalled about 4.1 million lithium-ion
notebook computer batteries with cells manufactured by Sony,
which posed the risk of a possible overheating or fire. Dell,
however, does not expect this recall to have a material adverse
effect on its results of operations, financial position or cash
During its recently completed second quarter, Dell's earnings
fell 51% from last year despite a 5% rise in revenue, as the
company priced its products aggressively in a slower market
and also it incurred higher operating expenses. The world's
largest PC maker's net income for the second quarter was $502
million or $0.22 per share, compared to $1.02 billion or $0.41
per share in the last year. Meanwhile, the company's topline
rose to $14.09 billion from $13.43 billion in the same quarter
Kevin Rollins, Dell chief executive officer, then said, While
we are disappointed with the results for the quarter, we are
taking the necessary actions to correct missteps and improve
our results for the long term. Key actions include accelerating
cost initiatives, increasing investments in service and support,
and better pricing management.
The only light among the company's dark results was that Dell
extended its relationship with Computer microprocessor maker
finance analysis Advanced
Micro Devices, Inc. (AMD) recently, which first announced last
quarter. Dell noted that it would launch Dimension desktop computers
with AMD processors and would introduce a two-socket and multi-processor
server using AMD Opteron processors by the end of the year.
Recently, on August 18, Deutsche Bank upped its price target
on DELL shares to $25 from $24, while raising 2007 earnings
per share estimate to $1.05 from $1.00 and its 2008 estimate
to $1.25 from $1.15.
DELL is currently trading down $0.79 or 3.65% at $20.86, on
a volume of 18.97 million shares. For the past 52-weeks, shares
traded in the range of $18.95-$35.25.
How about lending your money to
people There is some risk involved in it. How about depositing
it in the bank ...
2. finance advice
Financial Preparations forTaking
home loans in USAFinancial preparation for taking home loans
is very essential ...
3. car loans
Get yourself a car with car loansIf
you want to purchase a new car then, there is more to keep in
mind than just...