Avid Receives Additional Notice of Potential NASDAQ Delisting

Posted by Joe Zaller
Aug 19 2013

Avid announced that it has received an additional notification from the NASDAQ Listing Qualifications Department that the company remains non-compliant with NASDAQ Listing Rule 5250(c)(1) due to the delay in filing its Form 10-Q for the quarter ended June 30, 2013.

Failure to regain compliance with Listing Rule 5250(c)(1) could serve as a basis for the delisting of the Avid’s stock from the NASDAQ Global Select Market.

Avid said it anticipated the receipt of the letter, and that the notification has no immediate effect on the listing of Avid’s common stock on the NASDAQ Global Select Market.

The NASDAQ notification requires Avid to submit an update to its original plan to regain compliance with NASDAQ’s filing requirements for continued listing by August 21, 2013.

Avid says it intends to submit such an update to its original plan by the required date.

If NASDAQ accepts Avid’s plan, the company could be given until September 16, 2013, to regain compliance.

If NASDAQ does not accept Avid’s plan, Avid will have the opportunity to appeal that decision to a NASDAQ Hearings Panel.

The latest notification stems from Avid’s previously announced internal audit of the way it historically accounted for certain software upgrades delivered to certain customers.  When this process has been completed, Avid will restate its financial results the fiscal years ended December 31, 2011, 2010 and 2009 and for the quarterly periods ended March 31, 2012 and 2011, June 30, 2012 and 2011, and September 30, 2012 and 2011

As a result of the ongoing audit, Avid is currently unable to file its annual report on Form 10-K for the year ended December 31, 2012 and quarterly reports on Form 10-Q for the quarters ended March 31, 2013 and June 30, 2013.

Avid says it is working diligently to complete the accounting evaluation, the restatements and the filings as soon as possible.

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Related Content:

Avid 8-K Filing: Receipt of Anticipated NASDAQ Letter

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