Apple Granted Continued Nasdaq Listing

By Colleen Taylor -- Electronic News, 10/27/2006

As the consumer electronics giant's stock is soaring, Nasdaq has decided to let Apple Computer Inc. off the hook, at least for now.

Apple has received a written notification from the staff of the Nasdaq stock market stating that the Nasdaq listing qualifications panel has granted the company's request for continued listing, the company said this week in a regulatory filing with the Securities and Exchange Commission (SEC).

The company's filing was delayed by its participation in an internal investigation into whether or not the company participated in the now-infamous practice of backdating stock options, a now-notorious practice which has ignited a large-scale scandal in Silicon Valley of late. Earlier this month, Apple commenced its review and admitted to illegally backdating some of its options. Apple has said it will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants.

Apple's continued listing is subject to the condition that the company files its delayed Form 10-Q to the SEC for the quarter ended July 1, and any other required restatements, by December 29. If the company is unable to file the Form 10-Q by that date, it will have to head back to seek an additional extension of time from the Nasdaq listing qualifications panel.

Apple’s continued listing should elicit a sigh of relief from the company's shareholders. Despite Apple's legal woes, its stock keeps going up. During trading this morning, share prices hit $82.27, worlds away from the $50.67 stock was priced at just months ago, in mid-July.