Computer networking equipment maker Extreme Networks Inc. said Thursday it received another delisting notice from the Nasdaq Stock Market because it has not filed its financial results on time.
Extreme has delayed filing results with the Securities and Exchange Commission for the quarters ended Oct. 1 and Dec. 31 and its annual report for the fiscal year ended July 2, 2006 because it is reviewing its past stock-option granting practices.
The company said last month it expects to restate financial results to correct probable accounting errors related to stock option grants. Extreme said a special committee reached a preliminary conclusion that some dates registered for stock option grants do not match the actual dates of the respective awards.
The company said it will file the reports "as soon as practicable." Extreme faces a March 21 deadline to file the delinquent reports, but has asked the Nasdaq for an extension beyond that date.
At least 200 companies are either under investigation by regulators or have started internal probes into the practice of backdating, which sets the date of the option at the stock's lowest point in a given period, artificially inflating the value of the award. The practice is not illegal, but it must be properly accounted for.
Shares of Extreme were unchanged at $4.63 in morning trading on the Nasdaq Stock Market.
AP
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