Altera Faces Delisting Threat
Staff Reporter -- EDN, May 18, 2006
Altera Corp. has received written notice from the Nasdaq Stock Market that it is not in compliance with that organization’s rules because of Altera’s delayed filing of its 10-Q quarterly report with the U.S. Securities and Exchange Commission.
Altera announced on May 8 that it would delay that filing for more than five days as it conducts an internal review of historical stock option practices and related accounting treatment. Altera is one of several companies currently conducting such an internal investigation following a report by the Wall Street Journal that called into question the timing and pricing of option grants at a number of companies. Altera was not one of the companies identified in the Wall Street Journal report.
The Nasdaq Staff Determination notice received by Altera said that the company’s securities would be delisted from the exchange unless Altera requested a hearing before the hearing panel for review. Altera said that a timely request would stay the delisting pending the hearing, but there could be no assurance that the hearing panel would grant Altera’s request for continued delisting.
Altera announced that its board had established a special committee of independent directors to conduct its internal review. The committee is being assisted by independent legal counsel and outside accounting experts. The company said it will file its 10-Q as soon as practicable after completion of the special committee’s review.
Vitesse today announced it fired its CEO, CFO and an executive VP following its investigation of options grant practices at that company.
