Marvell receives another Nasdaq delisting threat

By Colleen Taylor, Contributing Writer -- Electronic News, 4/2/2007

Still feeling fallout from an ongoing stock options granting probe, Marvell Technology Group Ltd. reported today that it has received yet another delisting threat from the Nasdaq stock market.

Marvell said it received a notice on Friday, stating that the company is not in compliance with the market's rules due to the late filing of its annual report on Form 10-K to the Securities and Exchange Commission (SEC) for the fiscal year ended January 27.

This is not the first time the company has incurred Nasdaq's criticism for tardy SEC forms. Marvell received similar notices in December and September due to the delay in filing its Forms 10-Q for the fiscal quarters ended October 28 and July 29, respectively.

The forms have been delayed as a special committee of Marvell's board is still conducting an internal review relating to the company's historical stock option practices and related accounting matters.

Marvell said it intends to file its delayed Forms 10-Q and Form 10-K "as soon as practicable" following the conclusion of the special committee's review.

After the months of threats, the company's shares now seem to be on the brink of being delisted from the market. Marvell said it had a hearing before a Nasdaq listing qualifications panel regarding the continued listing of its shares on the Nasdaq stock market, and has appealed the decision of that panel to the Nasdaq listing and hearing review council, which stayed the panel's decision pending further action. Marvell said that it does not know when the listing council may take any further action regarding its stay.

For now, though, Marvell said its shares will remain listed on the Nasdaq stock market pending a decision by the listing council.
  
Marvell is not the only company that has come under fire from Nasdaq for repeatedly failing to file SEC forms on time due to an ongoing stock options probe. NEC Corp. said last month its stock may be delisted from the market after tomorrow after similarly repeated warnings from the Nasdaq. As of today, the company has yet to release any updated news on its listing status.