Broadcom Faces Delisting Threat
Staff Reporter -- EDN, August 21, 2006
Broadcom Corp. has received a staff determination notice from the Nasdaq stock market stating that the company's Class A common stock is subject to delisting.
The notice, which the company said it expected, was issued in accordance with standard Nasdaq procedures as a result of the delayed filing of Broadcom's quarterly report on Securities and Exchange Commission (SEC) Form 10-Q for Q2.
Currently, Broadcom is conducting a voluntary review of its stock option granting practices. In July, the company announced that it would restate five years of financial results and record an additional $750 million in expenses.
The company will appeal and request a hearing before a Nasdaq listing qualifications panel in response. In doing so, the appeal and hearing request will automatically stay delisting of the company's Class A common stock pending the panel's review and determination.
Broadcom is among dozens of other tech companies mired in trouble related to stock option grants. Recently, Asyst, Rambus and Brooks Automation, among others have all faced the threat of delisting from the Nasdaq market due to stock option investigations. Of those three companies, Brooks has cleared the Nasdaq threat and will remain on the exchange for the time being.
