Avid Technology Inc., a Burlington company that recently postponed its earnings announcement to evaluate its accounting practices, said that as expected, it has been notified by Nasdaq that it is no longer in compliance with the stock exchange’s listing requirements.
In a Feb. 25 press release, the maker of equipment for editing music and video said it was postponing its fourth-quarter 2012 earnings release.
Under Nasdaq rules, a company is required to file timely periodic reports with the Securities and Exchange Commission. Avid said it alerted the SEC earlier this month that it was unable to file the required paperwork before its due date because it is continuing to evaluate the accounting treatment related to bug fixes, upgrades, and enhancements in certain of the company’s customer arrangements.
In a press release issued yesterday afternoon, Avid said that it intends to submit to the SEC staff a plan as to how it expects to regain compliance with Nasdaq’s continued listing requirements.
So far, the company has not indicated when it will complete the evaluation of its accounting review and when it will issue its overdue earnings statement.
In yesterday’s press release, Avid said, “The company is working diligently to complete the review and continues to focus its efforts on completing the Form 10-K filing as soon as possible.”
Avid added: “The company plans to continue to invest in its product innovation and execute on its growth strategy. The company has no debt and ample cash to support it in these efforts and believes it is well positioned to support its customers’ ongoing success.”