Unix supplier SCO risks being delisted from the Nasdaq stock exchange for failing to post its annual financial...
results on time as a result of a falling-out with its auditors.
The company's year-end was 31 October and it should have posted the results by the end of January to comply with Nasdaq rules. SCO says its stock will be delisted if the full results are not posted in an acceptable form to Nasdaq by 25 February.
SCO can request a stay of execution from Nasdaq by lodging a hearing with the Nasdaq listing qualifications panel, which intends placing a delisting warning against SCO’s shares from today.
SCO says its main financial results are ready but that they have not been completed because of a disagreement with its external auditors over the way SCO’s employee share ownership plan should be treated in the overall results.
Although SCO seems confident it will overcome the problem, it warned in a statement that "there can be no assurance that the panel will grant SCO’s request for continued listing".
The company is also currently involved in a multibillion-dollar patent infringement lawsuit with IBM, related to Linux code that SCO claims it owns and which was allegedly misused by Big Blue. It is also taking legal action against open source users, who, according to the company, require a licence to run Linux.