Ixia (XXIA) shares declined Friday after the networking equipment company said it received a new notice from the Nasdaq stock exchange that its stock no longer complies with listing requirements because it has not filed its 2013 annual report on time.
The company earlier this month said an internal audit initiated after XXIA’s former CEO quit in a flap over his credentials and other personal details also identified several mistakes in the timing of when certain revenues were recognized in recent quarters. The company’s chief financial officer also has since quit and XXIA said it was working quickly to determine if the errors will require it to restate financial information in prior quarters.
The company and Nasdaq have been exchanging correspondence since January when XXIA first delayed filing its quarterly report for the 12 months ended Sept 30, 2013, and now, for its annual report for the 12 months ended Dec. 31, 2013.
XXIA said it plans to ask for an extension to a March 18 deadline to submit the missing quarterly report. If that request is accepted, the company would likely have until May 19 – or 180 days after the original due date – to file its reports and regain compliance. It also would be eligible to appeal a negative ruling by the exchange, which would provide at least 15 calendar days before a delisting could occur.
XXIA shares were down 3.0% at $13.00 apiece in recent trade, just 7 cents off its session low. The stock has a 52-week range of $11.89 to $22.24 a share.