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Dell Delays Q3 Earnings Again, Faces Delisting

UPDATED: Dell's  accounting woes continued this week as the company said it would again delay filing third quarter earnings results due to the ongoing investigations into its finances.

In conjunction with the delay, the computer maker today also acknowledged that it received a notice of possible delisting from the Nasdaq stock market for failure to report Q3 earnings.

The warning comes three months to the day after Dell received a delisting warning from the market for failure to report Q2 earnings, which it still has yet to do.

Dell said it is delaying its Q3 10-Q form because of questions raised in the investigations by the Securities and Exchange Commission (SEC), the U.S. Attorney for the Southern District of New York and Dell's audit committee into the possibility of financial misstatements.

The investigations are examining certain accounting and financial reporting issues, including issues relating to reserves and other balance sheet items that may affect the company's previously reported financial results, Dell said in an SEC filing.

Dell said no decision has been made as to whether restatements of prior period financial statements will be required. The company also said it could not predict the extent or significance of any such changes, which could materially affect previously announced results.

The latest delays comes a month after the computer maker first announced a Q3 earnings delay and confirmed the SEC was probing the company on its financial reporting.

Days later, Dell reported preliminary Q3 results, announcing revenue of $14.4 billion, operating income of $824 million, and earnings per share of 30 cents, all greater than results from the year-ago period.

After the first Q3 delay, Goldman Sachs said in a report the series of miscues by Dell makes management changes a possibility despite the fact that Chairman Michael Dell has repeatedly stood by CEO Kevin Rollins.

To be sure, the company has not officially reported fiscal earnings since announcing a disappointing Q1 in May, when it reported revenue of $14.2 billion and earnings of 33 cents per share versus the originally expected $14.2 to $14.6 billion sales and earnings per share of 36 to 38 cents.

The latest delay and delisting warning didn't help Dell's stock; the company closed at $26.53, down 34 cents on the day.