Dell Dealt Nasdaq Delisting Threat
By Colleen Taylor -- EDN, September 21, 2006
Dell Inc. plans to request a hearing before a Nasdaq listing qualifications panel in response to the company's September 15 receipt of a Nasdaq staff determination letter indicating the PC maker is not in compliance with the filing requirement for continued listing on the market.
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 August 4. In a statement, Dell said it was unable to file its Form 10-Q due to "questions raised in connection with an informal investigation by the U.S. Securities and Exchange Commission (SEC) into certain accounting and financial reporting matters," and the subsequently initiated independent investigation by an audit committee of the company's board of directors.
The SEC requests for information were joined by a similar request from the United States Attorney for the Southern District of New York, who has subpoenaed documents related to the company's financial reporting from 2002 to the present.
Dell's current situation is not unique in Silicon Valley, where a growing probe of tech companies' stock options granting practices has been under way for months. Broadcom, Rambus and Vitesse have all faced similar threats of delisting from Nasdaq after failing to meet the SEC's form filing deadlines due to stock options investigations.
The company said it will file the report as soon as possible. Pending a decision by the panel, Dell shares will remain listed on the Nasdaq stock market.
