Dell Announces Lower Profits, SEC Investigation

Dell has announced that the SEC (Securities and Exchange Commission) is investigating the company for the ways it recognized revenue and reported its financials for certain periods prior to its current fiscal year. In addition, it said that its second quarter profit of US$502 million was 51% less than the year-ago period, which it blamed on aggressive price-cutting.

Dell also said that it is deepening its relationship with Intel rival AMD, according to IDG News. The company said that next month it will start selling Dimension desktops with AMD chips, in addition to the already-announced servers that are expected by the end of the year.

Chairman Michael Dell said: "We are exploring all sorts of ways to accelerate new releases and cost improvements." He and other Dell executives refused to discuss the SEC investigation.