Novell yesterday announced that it has postponed its Q4 and full-year 2007 earnings release due to a review by the US Securities and Exchange Commission (SEC) into "certain accounting matters".
In a statement, the company says: "Novell received a comment letter from the Securities and Exchange Commission (SEC), dated August 7, 2007, regarding Novell’s Form 10-K for the fiscal year ended October 31, 2006, and its Form 10-Q for the quarterly period ended April 30, 2007. Novell delivered a response letter to the SEC on September 20, 2007. On October 18, 2007, Novell received a second comment letter from the SEC indicating that the SEC had reviewed Novell’s response to the August 7, 2007 letter. The second comment letter was limited to certain accounting matters. Novell responded to the SEC’s second comment letter on November 7, 2007 and is awaiting a response."
Novell adds that it intends releasing its results upon the completion of the SEC's review. "Novell is unable to estimate when the process will be completed, but currently expects to file its Form 10-K for the fiscal year ended October 31, 2007 on or before its due date of December 31, 2007," it says.
"We are confident of our accounting and are working diligently with the SEC to respond to their inquiries," says Dana Russell, CFO of Novell. "In an abundance of caution, we have chosen to postpone our earnings release. We look forward to completing our dialogue with the SEC."