Dell Delays Latest 10-Q Filing As Probe Winds Down

Dell said in a regulatory filing Thursday that it would delay its most recent quarterly report with the U.S. Securities and Exchange Commission, as board members work toward completing an investigation into accounting issues it has been examining since last year.

The Round Rock, Texas-based PC maker said the 10-Q filing for the first quarter of its 2008 fiscal year would be delayed, following delays to 10-Qs for its second and third quarters of last year as well as its 10-K annual report.

Earlier this year, Dell issued a statement saying the Audit Committee of its board had uncovered "accounting errors, evidence of misconduct and deficiencies in the financial control environment," although the company has stopped short of offering any specifics. The directors have not yet determined whether the company needs to restate previous financial reports as a result of what it has uncovered.

"As a part of the final phases of the investigation, the Audit Committee is in the process of reviewing each of the identified accounting errors and proposed correcting adjustments," Dell said in a separate filing with the SEC on Thursday. "Upon completion of that review, the Audit Committee will evaluate the impact and nature of the errors to determine whether a restatement of any previously issued financial statements will be required. To date, the Audit Committee has not determined whether any restatements will be required, or whether any identified control deficiencies constitute material weaknesses."

In addition to the Audit Committee, the SEC and the U.S. Attorney for the Southern District of New York have been conducting their own investigations.

While not filing those reports with the SEC, the company did report "preliminary financial results" for its quarter that ended on May 4. Those results included revenue of $14.6 billion, an increase from the $14.2 billion for the year-ago quarter, and operating income of $947 million compared with $759 million for the same quarter a year earlier.