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Quest Back In Nasdaq Compliance

Aliso Viejo’s Quest Software Inc. is back in Wall Street’s good graces.

Quest said Wednesday it received a letter from the board of directors at Nasdaq that confirmed the company has “regained compliance with the periodic reporting requirements” of the exchange, according to a company statement.

The maker of business software has had a rocky relationship with Nasdaq officials during the past year.

Nasdaq has sent a slew of warnings and notices threatening to kick Quest’s stock off the exchange for not reporting financial results during a long-running probe into the misdating of stock options.

It picked on Quest for other infractions, such as not holding an annual shareholders’ meetings for 2006 and 2007 or sending out proxy statements.

The move marked the end of a more than a yearlong ordeal for Quest, which had a recent market value of nearly $2 billion.

In May 2006, the company formed an internal board committee to review stock options grants from June 1998 and December 2005.

Quest, which makes software that works with widely used business programs by Microsoft Corp., Oracle Corp. and others, gave Wall Street only partial quarterly results for much of the past year or so while it sorted through its internal audit of options.

The year-long hiatus in reporting raised concern among investors and landed Quest in hot water with Nasdaq until last week, when the company announced it’s now up to date on all of 2007 financial results.

Last month the company said it took charges of about $137 million for restating the cost of option grants and filed delayed results for 2006.

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