The risk that Mercury Interactive Corporation (Nasdaq: MERQ) might be de-listed from the main Nasdaq list is growing. Today, Mercury, which provides business optimization systems, requested more time for filing its full financial reports (10-Q) for the second and third quarters of 2005, and for restatement of its financials dating from April 2002 onwards.
The company said it had requested an extension to the January 3, 2006 Nasdaq deadline in order to finish the significant volume of work required to be fully compliant with Nasdaq requirements for continued listing related to its financial restatements and SEC filings.
Mercury said it had requested this extension from the Nasdaq Listing Qualifications Panel, and that it would report the Panel's response promptly after written notice of the response was received. The company also requested that, if the Panel did not grant its extension request and decided to de-list its common stock from Nasdaq, the Panel should grant it the right to re-list quickly. Mercury requested expedited re-listing under the Nasdaq National Market maintenance standards once it fulfills its filing requirement and demonstrates compliance with all other initial listing standards for The Nasdaq National Market.
Mercury CEO Tony Zingale said, "We have completed a significant amount of the work required to finish our restatement, and we have strong visibility into the steps we need to take to ensure that our restated financials meet Nasdaq requirements. Mercury's management remains fully focused on running our business while completing the restatement in as timely of a manner as possible.
"We are leaving no stone unturned to ensure our restated financials are thorough, complete and accurate. Our shareholders, employees and customers can be assured that the core strengths of Mercury's business operations, excellent product offerings, and large market opportunity remain the same."
The restatement of Mercury's financial statements is being undertaken as a result of the determinations made by its Special Committee of the Board of Directors, which reported on November 2, 2005, regarding stock option matters and loans to certain officers.
The Nasdaq Panel gave Mercury until January 3, 2006 to file its quarterly reports on form 10-Q for the periods ended June 30, 2005 and September 30, 2005, all required restated and other financial statements for previous periods, and to otherwise meet all necessary listing standards of The Nasdaq National Market.
The Panel noted that it would not entertain further extension requests should the company be unable to make its filings by the January 3, 2006 deadline, and that if the company was unable to comply with the conditions for continued listing required by the Panel, its shares would be subject to immediate de-listing from The Nasdaq National Market.
Published by Globes [online], Israel business news - www.globes.co.il - on December 27, 2005