IBM has disclosed that the U.S. Securities and Exchange Commission is formally investigating its first-quarter 2005 earnings and equity compensation expenses. IBM had said in June 2005 that it was cooperating informally with the SEC regarding the matter. IBM changed its accounting practices and began counting employee stock options as an expense in that quarter.

Microsoft issues plan for XP support

Microsoft Corp. has disclosed that it will continue to provide mainstream support for all flavors of Windows XP, including the Home and Professional editions, for two years after the release of Windows Vista. Vista, the successor to XP, is expected to ship late this year. The company quietly listed the new policies on its Web site last week. Microsoft had not previously disclosed its XP support plans.

Claflin will retire as CEO of 3Com

Bruce Claflin announced that he will retire as president and CEO of 3Com Corp. as soon as the networking technology vendor finds a replacement. Claflin joined 3Com in 1998 as president and chief operating officer. He will help in the search for his successor and will remain an adviser to 3Com for six months after the next CEO is hired.