Avid Receives Another Notice of Potential NASDAQ Delisting, Submits Plan to Regain Compliance

Posted by Joe Zaller
May 22 2013

Avid been notified by NASDAQ that, due to the company’s delay in submitting various regulatory filings, it remains non-compliant with NASDAQ’s Listing Rules.

Failure to regain compliance could result in the delisting of Avid’s shares from the NASDAQ Global Select Market.

The company said the latest notification was expected, as it was issued in accordance standard NASDAQ procedures, and that it has no immediate effect on the listing of Avid’s common stock on the NASDAQ Global Market.

Avid’s issues with NASDAQ, which have been going on for several months, stem from an internal investigation into how it historically recognized certain types of service revenues.

In February 2013, Avid announced that it would delay the release of its Q4 and full-year 2012 results in order “to provide additional time for the company to evaluate its current and historical accounting treatment related to bug fixes, upgrades and enhancements to certain products which the company has provided to certain customers.”

In March 2013, Avid delayed the filing of its annual Form 10-K with regulators.  The company also subsequently delayed its annual shareholder meeting.

On May 172013, the company received  notification from NASDAQ that it remains non-compliant with NASDAQ Listing Rule 5250(c)(1) due to Avid’s delay in filing its Form 10-Q for the first quarter ended March 31, 2013.  This requires timely filing of periodic reports with the SEC as a condition of being listed on the NASDAQ Market.

Avid has now submitted to NASDAQ explaining how it expects to regain compliance with NASDAQ’s continued listing requirements.

If the plan is accepted, Avid expects to have up to 180 calendar days from the initial due date for the Form 10-K, or until September 16, 2013, to regain compliance.

If the plan is not accepted, Avid will have the opportunity to appeal that decision to a NASDAQ Hearings Panel.



Related Content:

Press Release: Avid Announces Receipt of Second Anticipated NASDAQ Letter and Initial Determinations of its Accounting Evaluation

Greenfield Resigns from Avid Board of Directors

Avid Replaces Chief Financial Officer

Avid Receives Notice of Potential Delisting From NASDAQ for Failure to Submit 10-K Filing

Avid Delays Release of Q4 and Full Year 2012 Results, Shares Fall

Greenfield Out as Avid CEO, Replaced by Louis Hernandez


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