UPDATED: Former Wall Street darling faces a possible delisting after failing to file its second-quarter results.
September 21, 2006
UPDATED: Former Wall Street darling faces a possible delisting after failing to file its second-quarter results.. Check it out:(www.internetnews.com Via Thomson Dialog NewsEdge)
UPDATED: Exploding laptops, delayed financials, and delayed desktops: Dell has seen better days.
The computer maker today said it received a delisting warning from the Nasdaq stock market last Friday because it missed its second quarter earnings filing.
Dell, whose founder and chairman Michael Dell said at a technology launch last Tuesday that he expected such a letter from the stock market, said it will request a meeting with the Nasdaq listing qualifications panel to work out the issue.
Dell said its shares will remain listed on the Nasdaq pending a decision by the panel.
Publicly traded companies need to hold regular quarterly financial earnings disclosures to comply with marketplace rules; failure to do so can result in a delisting.
Dell was originally supposed to file a Form 10-Q to the Nasdaq for Aug. 4 and announce second-quarter earnings on Aug. 17.
But the company has delayed them due to an ongoing investigation into its accounting practices by the Securities and Exchange Commission (SEC).
Dell, whose board triggered an independent investigation by its audit committee, said the United States Attorney for the Southern District of New York made a similar request for information as the SEC, subpoenaing documents related to the company's financial reporting from 2002 to now.
The company said it will file a report on its findings as soon as possible.
Michael Dell reaffirmed that fact at the Sept. 12 technology event, where the company unveiled power-saving and AMD Opteron PCs.
Dell is also busy on the enterprise front; yesterday the vendor teamed with Symantec on Secure Exchange, a package of Dell servers running Symantec's security software designed for medium-sized businesses with 500 to 2000 seats of Microsoft's Exchange Server.
But for every positive announcement, Dell seems to have a negative one, of late.
Just days before missing its Q2 financial report in August, the company recalled 4.1 million notebook batteries manufactured between 2004 and 2006 after some of the laptops the batteries were in caught fire.
Today, the Wall Street Journal profiled consumer outrage over delivery delays and missing features in the company's XPS 700 desktop.
PC makers aren't the only vendors faced with delistment.
Novell said Wednesday it received a delisting notice from the Nasdaq because of a delay in filing its third-quarter earnings report.
Because of this delay, Wells Fargo Bank notified Novell it what in danger of defaulting on a $600 million loan.
Novell, which attributed the delay to a review of its stock compensation practices, will request a hearing before Nasdaq to halt the delisting.
It's not a great season for tech companies.
HP is under fire for allegedly snooping on journalists it believes received inside information about its board meetings in recent years.
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Related Tags: second quarter, quarter earnings, Nasdaq, nasdaq, company, delisting
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