Novell disclosed that it received a third notice of non-compliance from the Nasdaq Stock Market for not filing its financial reports on time.
The security-software company blamed its ongoing review of previous practices regarding stock-based compensation.
Novell received the latest warning after failing to file its report for the fiscal quarter ended January 31. The company also received notices of non-compliance after delays in filing its report for the quarter ended July 31, 2006, and for the fiscal year ended October 31.
After receiving the first notice, Novell requested a hearing before a Nasdaq Listing Qualifications Panel. On January 9, the panel granted the company’s request to remain listed on Nasdaq, on the conditions that Novell provide it with information regarding an internal review of stock-based compensation practices, become current in its delinquent reports, and file any necessary restatements by March 13.
Last month, according to Novell, the Nasdaq Listing and Hearing Review Council issued a stay on the panel’s deliberations regarding the company. The listing council gave Novell until May 4 to describe its plan for filing the delinquent reports.
In addition, Nasdaq gave Novell until Thursday to address the delay in filing its first-quarter report.
The company stated that it plans to provide both submissions in a timely manner.