Menu
Dell uncovers internal accounting errors

Dell uncovers internal accounting errors

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 announced on Thursday

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 February beyond 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 in January by shareholders, alleging that a small circle of executives arranged for Dell to accept 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 US District Court in Austin, Texas.


Follow Us

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.

Tags DellMIchael Dell

Featured

Slideshows

Meet the leading female front runners of the Kiwi channel

Meet the leading female front runners of the Kiwi channel

Reseller News honoured the leading female front runners of the New Zealand channel at the 2018 Women in ICT Awards (WIICTA) in Auckland. The awards honoured standout individuals across seven categories, spanning Entrepreneur; Innovation; Rising Star; Shining Star; Community; Technical and Achievement.

Meet the leading female front runners of the Kiwi channel
Meet the top performing customer-centric Microsoft channel partners

Meet the top performing customer-centric Microsoft channel partners

Microsoft honoured leading partners across the channel following a year of customer innovation and market growth in New Zealand. The 2018 Microsoft Partner Awards recognised excellence within the context of the end-user, spanning a host of emerging and established providers.

Meet the top performing customer-centric Microsoft channel partners
Reseller News launches new-look Awards at 2018 Judges’ Lunch

Reseller News launches new-look Awards at 2018 Judges’ Lunch

Introducing the Reseller News Innovation Awards, launched to the channel at the 2018 Judges’ Lunch in Auckland. With more than 70 judges now part of the voting panel, the new-look awards will reflect the changing dynamics of the channel, recognising excellence across customer value and innovation - spanning start-ups, partners, distributors and vendors.

Reseller News launches new-look Awards at 2018 Judges’ Lunch
Show Comments