IBM says SEC investigating company's accounts
(Reuters) — International Business Machines Corp. said the U.S. Securities and Exchange Commission was investigating the company’s accounts.
The investigation relates to revenue recognition with respect to certain deals in the United States, Britain and Ireland, IBM said on Tuesday.
The company said it learned of the investigation in August and was cooperating with the SEC.
IBM did not say what deals were under investigation.
Shares of the world’s largest technology services company fell as much as 3.9% to $138.10 — a five-year low — in afternoon trading.
IBM posted a bigger-than-expected drop in third-quarter revenue and cut its full-year profit forecast last week as a stronger U.S. dollar accentuated weakness in demand from China and emerging markets.
Up to Monday’s close, IBM’s stock had dropped about 10.5% this year.
Read Next
-
Developer, former CEO settle U.S. SEC charges over land value
(Reuters) — St. Joe Co. and five individuals, including a former CEO, agreed to settle U.S. regulatory charges the Florida developer and landowner improperly accounted for the falling value of its residential real estate assets after the financial crisis.
