Avid was delisted from the NASDAQ stock market today. The action is in accordance with a letter to Avid from NASDAQ on Friday, which said that the exchange’s Listing Qualifications Panel had determined to delist Avid’s shares. Avid’s products include Sibelius, as well as Pro Tools, Media Composer, and other media solutions.
In its press release yesterday, Avid said that the letter and action were anticipated. Last month, CFO John Frederick said that since he assumed his role in April 2013, Avid had made significant progress in its efforts to become current with its filings, but that the “scope of the project is more involved than the Company first expected”. The project includes restating financial statements back to 2009. Consequently, he did not believe that Avid would “be able to achieve the March 14, 2014 deadline established by NASDAQ” to regain compliance with its SEC filing requirements, which were required in order for NASDAQ to allow Avid’s stock to continue to be traded on the exchange.
The company’s shares, for which the ticker symbol will remain AVID, has begun trading on the OTC Markets – OTC Pink Tier.
Avid said yesterday that it “intends to complete the restatement and regain compliance with its SEC filing requirements as soon as practicable. The Company is targeting mid-2014 for completion of the restatement. In connection with becoming current in its SEC filing requirements, the Company intends to apply for prompt relisting on the NASDAQ Stock Market as early as possible after regaining compliance with the listing requirements.”
Today, Sibelius senior product manager Sam Butler said:
Although I can’t comment about specifics, I’d like to reassure you that behind the scenes, we’re carrying on as usual developing Sibelius, Pro Tools, Media Composer and our other software and hardware solutions. We’re investing heavily in new technologies and expanding our development teams to transform our solutions. Over the next few months to a year, you’ll see big advances in our products and solutions.
For Sibelius, we’ll soon be releasing Sibelius 7.5, which marks a huge milestone for the team. After that, we’ll be looking into improvements to both Sibelius and the Scorch platform that are in line with the Avid Everywhere platform.
As for the financial review, it’s been tricky going through every financial transaction and sale for all Avid’s products over the last several years. The leadership team have a clear path as to where we’re going. I’ll post news as we get it. For now, it’s business as usual.
Avid closed at $4.93 yesterday, down more than 28% from Friday’s close. Avid was first listed on NASDAQ in 1993 and its share price had once reached as high as $66 in 2005. The NASDAQ index closed at a 14-year high yesterday.
Image © Copyright 2006, The Nasdaq Stock Market, Inc. Reprinted with the permission of The Nasdaq Stock Market, Inc. Photo credit: Rob Tannenbaum/Nasdaq