Dell Delays 10-Q

The PC maker won't make the deadline because of the investigation into its accounting practices.
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Dell

(DELL) - Get Report

delayed itsthird-quarter financial report Thursday, citing an

ongoing probe of its accounting practices.

Dell is facing a formal investigation by the

Securites and Exchange Commission

and has received a subpoena from the JusticeDepartment regarding the possibility of misstatementsin prior financial periods.

As a result of questionsraised in the investigations, Dell said it was unableto file its third-quarter 10-Q report with the SEC.

Dell initially postponed its press releasedetailing third-quarter results in November as aresult of the accounting probe, releasing limitedinformation about the results later that month andomitting the customary briefing with analysts.

The investigations are examining certainaccounting and financial matters, including issuesrelated to reserves and other balance sheet items thatmay affect its past financial results, Dell said.

The company said the investigations are ongoingand that no determination has been made about whetherrestatements will be necessary but that it could notpredict whether any such restatements could materiallyaffect past results.

Dell said it hopes to resolve the issues raised inthe investigation and regain compliance with filingregulations as soon as possible.

Shares of Dell slipped 1.3%, or 34 cents, to $26.53in extended trading.