Comverse said it received a delisting notice earlier in the week from the Nasdaq for delaying the filing of its 10-K annual report for the fiscal year ended January 31, 2006. Comverse has already said it can't file the annual report in time to meet next Monday's deadline, nor will it have the report ready if a 15-day extension was given. To make matters worse, the company also said it is going to restate financial results for fiscal years 2000 through 2004 and the first three quarters of 2005. Investors won't be happy. The changes are expected to reduce profits for 2000, 2001, 2004, and 2005, and increase losses for 2002 and 2003. The problem has to do with stock option grants and when they were awarded to chairman Kobi Alexander. The dates don't match up as to when they were allocated with the dates on record.
To read more about Comverse's delisting notice:
- check out this report from Red Herring