According to IDG News Service, the Texas-based company has already postponed three quarterly earnings reports and its annual report as a result of the SEC investigation, which kicked off last year. The company used the same reasoning for delaying the earnings statements as for its 401(k) plan statements – that the investigations, both internal and from outside parties, were still underway.
The probe by the SEC into Dell’s accounting practices parallels an investigation by the U.S. Attorney for the Southern District of New York. An ongoing internal audit has already unearthed evidence of misconduct and accounting errors.
The company has not determined whether it would have to restate past earnings numbers, but such reports will only be preliminary until the investigations cease, Dell spokesperson Bob Pearson told IDG.