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Wednesday, Jun 17, 2026

Quest Gets Another Nasdaq Warning

Nasdaq officials continue to badger Aliso Viejo-based Quest Software Inc. for a running lapse in financial results amid a probe into stock option grants.

The business software maker said Friday it received another Nasdaq letter saying it has failed to comply with the exchange’s listing rules.

The latest warning came after Quest failed to file first-quarter results by a deadline agreed upon with Nasdaq. The letter is the fourth Quest has gotten from Nasdaq.

Quest now has until July 9 to file several financial reports for the past few quarters. The company’s shares will be booted from Nasdaq on July 11 if it still hasn’t complied, Quest said.

Quest hasn’t reported full financial results for a year now, nor offered even partial quarterly numbers since August.

The company has been unusually quiet during the past eight months of a yearlong probe into stock option grants by a board committee and the Securities and Exchange Commission.

In January, Quest did say it expects to take a $150 million charge to past earnings to fix backdated stock options from 1998 to 2002.

Locally, Quest’s options case stands to be second, albeit a distant one, to that of Irvine-based Broadcom Corp.

Earlier this year, Broadcom restated earnings from 1998 to 2005 with $2.2 billion in charges, the most of any company so far.

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