NASDAQ today suspended trading of Avid, maker of Pro Tools, Sibelius, Media Composer and other pro audio/video tools.
Avid received notification from NASDAQ on February 21, 2014 that the NASDAQ Listing Qualifications Hearings Panel had determined to delist the shares of the Company from The NASDAQ Stock Market. NASDAQ suspended trading in the Company’s shares effective at the open of business today, February 25, 2014.
NASDAQ’s move was expected.
In March of 2013, NASDAQ warned Avid that the Company was no longer in compliance with NASDAQ rules, which require timely filing of periodic financial reports with the Securities and Exchange Commission (SEC).
Avid’s latest Annual Report and 10-K are for the year 2011. And Avid has stated that “its audited consolidated financial statements for the years ended December 31, 2011, 2010 and 2009 should no longer be relied upon,’ because of accounting errors.
Following the suspension of trading of the Company’s common stock on NASDAQ, the Company’s common shares will begin trading on the OTC Markets – OTC Pink Tier under the trading symbol AVID.
The Company says that it ‘intends to complete the restatement and regain compliance with its SEC filing requirements as soon as practicable’.
Update (2/27/2014): This post has been updated to remove a statement about Avid’s recent financial performance.
Avid notes that they have not published current financial statements, and that their delisting was because of financial reporting delays, not operating performance.
Here’s what our contact at Avid had to say:
Avid’s de-listing from NASDAQ and its subsequent listing on OTC is the result of delays in the reporting of financial information – it was not related to operating performance in any way.
We are continuing to work very hard to correct the accounting, which is related to nearly 5 million transaction lines spanning eight-and-a half years. We announced that we are targeting completion of the restatement by mid-2014.
We continue to invest in product innovation. Since the beginning of the restatement process, we released Pro Tools 11, Media Composer 7, Sibelius 7.5, two new online shared storage offerings, a brand new mixing console – the S6, as well as a new live sound system – Avid S3L.
With a compelling Avid Everywhere vision established, the launch of the ACA, a significant number of new product innovation announcements planned for 2014, we believe we remain well positioned to support our customers’ ongoing success.