- http://www.crn.com/showArticle.jhtml?artic…bleArticle=true
Sep. 12, 2006
"Dell Chairman Michael Dell said Tuesday he expects the Nasdaq stock exchange to begin delisting proceedings against the company, which on Monday announced that it would delay filing its 10-Q report with the Securities and Exchange Commission because of investigations into its corporate finances… Asked about the potential of Nasdaq to delist Dell, which is No. 25 on the Fortune 500, Dell said he expected some action to begin. "We would expect that would occur, and we would go through the process with Nasdaq. There is a 180-day cycle that occurs," Dell said. "We fully expect to get this issue resolved"…"
- http://www.crn.com/showArticle.jhtml?artic…bleArticle=true
Sep. 15, 2006
"…Last week, the hole Dell has been trying to climb out of got deeper. The company said it would delay the filing of its mandatory 10-Q report with the U.S. Securities and Exchange Commission because of a continued SEC investigation, and a probe by its board of directors, into its finances. In addition, Dell announced that the U.S. Attorney for the Southern District of New York has begun a separate but parallel federal probe into the company, subpoenaing its records dating back to 2002…"
NASDAQ Sends Dell Delisting Notice
- http://www.crn.com/showArticle.jhtml?artic…bleArticle=true
Sep. 21, 2006
"The NASDAQ has sent a notice to Dell, saying the company has failed to meet requirements for continuing to be listed on its exchange. In a statement, Dell said it plans to seek a special hearing before a NASDAQ panel to explain its position. The request delays any action by NASDAQ for several months. "As anticipated, the letter was issued in accordance with NASDAQ rules due to the delayed filing of the company's Form 10-Q for the quarter ended Aug. 4, 2006. Pending a decision by the panel, Dell shares will remain listed on The NASDAQ Stock Market," the Round Rock, Tex.-based company said in a press release. Under NASDAQ rules, a company must issue a press release announcing it has received a delisting letter from the stock exchange, or it can be delisted immediately without a hearing. Dell is facing a number of different investigations into its financial reporting and accounting methods. The U.S. Securities and Exchange Commission is conducting an "informal" investigation, the Audit Committee of Dell's Board of Directors is investigating, and the U.S. Attorney for the Southern District of New York has also subpoeaned Dell records going back to 2002, the company has acknowledged…"
- http://www.dell.com/content/topics/global….l=en&s=corp
…SEC Probe, Delayed Earnings Could Be 'Last Straw' For Dell
- http://www.crn.com/showArticle.jhtml?artic…bleArticle=true
Nov. 16, 2006
"Wall Street analysts said Dell's move to postpone its quarterly financial report and avoid questions about it, in addition to a formal regulatory investigation, could be the last straw for investors and lead to management changes. "The earnings pushout and the launch of the formal SEC investigation, on top of cancelled analysts meetings and other execution miscues, will probably represent enough of a 'last straw' to override any but the most extreme improvements in Dell's fundamental business for the near-term," Goldman Sachs analyst Laura Conigliaro said in a research note. "Of more concern will be the very real possibility now that this could precipitate management changes and add more uncertainty to a company that has already decided to provide less detail and no targets." Conigliaro's remarks came a day after Dell announced it was moving its third-quarter earnings announcement, which initially was expected Thursday, to later in the month. The Round Rock, Texas-based computer hardware giant also said an informal probe by the U.S. Securities and Exchange Commission was now a formal investigation…
Ben Reitzes, an analyst at UBS Securities, said in a research note that the formalization of the SEC's investigation of Dell's accounting could loom large. "The entering of a formal stage allows the SEC to begin issuing subpoenas," Reitzes wrote. "We believe a formal SEC investigation underscores how serious of a risk this matter could be to management continuity and investors' current perception of long-term EPS and cash flows"… "We acknowledge that making a call on Dell over the last few months has been extremely difficult, and it still is. On one hand, we are concerned by the SEC investigations and Dell's track record over the past few years in terms of dealing with Wall Street," he wrote. Yet Dell's improved product margins may be difficult for some investors to ignore when determining whether to stay behind the stock, he added."
