Human Capital & Careers

Agile to Restate Based on Options

Late-filing software maker got an extention from Nasdaq, but it must meet new deadlines or face delisting.
Stephen TaubOctober 27, 2006

Agile Software says it will restate its financial statements going back to 2000 to correct measurement dates for certain stock-option grants. Officials also went out of their way to give a vote of confidence to key employees, asserting in a statement that they do not believe any current executive or other officers were involved in any misconduct related to the option grants.

Agile notes that although it is unable to determine the final amount of the charges, the resulting tax and accounting impact of these actions, or the impact of the review on management’s assessment of internal controls over financial reporting, it expects the effects of the charges on its prior financial statements to be material. In addition, company officials say the software maker will not be delisted by Nasdaq, even though it is in violation of several listing requirements.

The company, which makes product life-cycle management software, said on August 1 that it had received a Nasdaq Staff Determination that it was in danger of having its stock delisted because it has not filed its annual report for the fiscal year ended April 30, 2006, or its quarterly report for the period ended July 31, 2006, on time.

However, earlier this month, Nasdaq granted Agile an exception, allowing the company to continue to list its shares on the Nasdaq Global Market provided it meets two conditions: that it provides Nasdaq with the an update regarding the results of the review of the operations of its Taiwan sales office — which the company says is now complete — as well as a review of its stock-option practices, on or about October 25, and that it files its fiscal 2006 annual report and July 31 quarterly report and all required restatements on or before January 8, 2007.

The company pledges to provide Nasdaq with the requested update on a timely basis, but warns that if it is unable to comply with the other term of the exception, its securities may be delisted.

4 Powerful Communication Strategies for Your Next Board Meeting