Dell Accounting Inquiry Made Formal by S.E.C. [New York Times]
Summary: Dell said yesterday that the SEC had formally opened an investigation into its accounting practices, as a result of which is was postponing its quarterly earnings report scheduled for after today's market close. When it does report at the end of November, it will do so in the form of a press release with no accompanying conference call for analysts to dissect the company's results. The company failed to provide any other details regarding the SEC investigation, which began in August. Dell still hasn't filed its 10Q for 2Q'06 earnings, which it claims is also a result of the investigation. The company also canceled an analysts’ meeting in September citing the S.E.C.’s investigation. Dell has denied the investigation is related to the options backdating scandal currently sweeping Wall Street; company spokesman Robert Pearson said Dell was "fully cooperating" with the SEC.
Related links: Media coverage: Bloomberg • Business Week • The Money Times. Commentary: Citigroup: Hewlett-Packard Should Outperform Dell Through Year-End • Dell Losing PC Market Share - And Wall Street Doesn't Care • Dell Shares Rising Ahead of Earnings - Margins Improving? • Is Dell Hitting a Turning Point?. Conference call transcripts: Dell Q2 2007 Earnings Conference Call Transcript (NASDAQ:DELL).
Potentially impacted stocks and ETFs: Dell (DELL) Competitors: Hewlett-Packard (NYSE:HPQ), Lenovo (OTCPK:LNVGY), Apple (NASDAQ:AAPL) • ETFs: Internet Architecture HOLDRS (NYSE:IAH), Vanguard Information Technology ETF (NYSEARCA:VGT).
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