Posted on Tuesday, December 19, 2006 4:40 PM
Autodesk today announced that, as it expected, it has received an additional Nasdaq notice stating that it is not in compliance with a Nasdaq rule that requires listed companies to file a quarterly report. Autodesk did not file a report with Nasdaq for the Fiscal Year 2007 Second and Third Quarters, due to its ongoing review of its past stock option granting practices.
Nasdaq initially informed Autodesk on September 13, 2006 that its securities would be delisted due to Autodesk's delay in filing its Form 10-Q for the second quarter ended July 31, 2006 unless Autodesk requested a hearing. Autodesk did request, and was granted, a hearing before the Nasdaq Listing Qualifications Panel to request an extension for continued Nasdaq listing. As of today, Autodesk says it is still waiting for a decision on its extension request.
In a prepared statement, Autodesk says it remains optimistic about the outcome of its extention request, but adds that there can be no assurance that the Nasdaq Panel will grant a request for continued listing. Shares of Autodesk common stock will continue trading on the Nasdaq pending the Panel's decision.
Autodesk did announce quarterly revenue for both the second and third fiscal quarters, as it usually does, but the announcements did not include earnings disclosures, as required by Nasdaq. The fiscal quarter ending October 31, 2006 (Autodesk's fiscal 2007 third quarter) was a record-setter, with revenues of $457 million. When Autodesk announced its third quarter results, it also said that its audit committee had reached a preliminary conclusion that the actual measurement dates for financial accounting purposes of certain broad-based employee stock option grants issued in the past differ from the recorded dates of such awards. As a result, Autodesk says, the audit committee believes the company will record additional non-cash stock-based compensation expenses related to stock option grants, but is not yet able to determine the amount of such charges or the resulting tax and accounting impact of these actions or whether any historical periods would require restatement. The company says any additional non-cash stock-based compensation expense recorded will not affect the company's previously reported cash positions or revenues.
As if Wall Street were saying, "we're watching but we are not too concerned—yet," Autodesk shares closed down 7 cents to $40.56 on the Nasdaq exchange today.
--RSN