Risk & Compliance

Dell’s Third Delisting Notice Wasn’t a Charm

Fourth Nasdaq letter, sent June 14, details noncompliance with reporting requirements stretching back to its Aug. 4 fiscal third quarter. An appeal...
Stephen TaubJune 19, 2007

Nasdaq sent Dell Inc. a fourth delisting notice, indicating that the computer maker is out of compliance with exchange requirements because it is delaying its financial report for the May 4 first quarter of its fiscal 2008.

Similar notices to the latest one, dated June 14, were sent after Dell delayed filings of quarterly reports for the periods ended last Aug. 4 and Nov. 3, and for all of fiscal 2007, ended February 2.

Dell, which began delaying its filings after questions arose from an audit-committee investigation, pointed out that it previously submitted a request that Nasdaq’s Listing and Hearing Review Council extend the company’s conditional listing while the company works to complete its delayed filings with the Securities and Exchange Commission, and to return to compliance with exchange listing requirements.

The council’s determination is pending, Dell said.

Company officials recently elaborated in a regulatory filing that Dell is in the final phases of the audit-committee probe, and that board members are reviewing each of the identified accounting errors and are proposing remedies. When it completes the review, the audit committee will determine whether the company needs to restate previously issued financial statements.

So far, Dell said at that time, the board members have not determined whether any identified control deficiencies constitute material weaknesses.