IBM Gets SEC Probe Request
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IBM on Monday said it received notice of a formal, non-public investigation by the U.S. Securities and Exchange Commission (SEC) into its revenue recognition practices for 2000 and 2001.
The Armonk, NY-based computer giant said the SEC is seeking information primarily concerning certain types of customer transactions but declined to specify the details. In its statement, IBM said it believes the investigation arises from a separate investigation by the SEC of a customer of IBM's Retail Store Solutions unit. The unit markets and sells point-of-sale products.
The SEC specifically advised IBM that this is a fact-finding investigation and that it has not reached any conclusions related to this matter. IBM said it has been cooperating fully with the SEC and will continue to do so.
IBM believes that its business and accounting policies comply with all applicable regulations and is committed to maintaining the highest standards of compliance relating to its financial reporting.