Aliso Viejo-based Quest Software Inc. said Thursday it had received a delisting notice from Nasdaq after the company failed to file its quarterly report on time.
Quest said that Nasdaq told the software maker it was “not in compliance” with Nasdaq listing rules.
The company has not been able to file its complete quarterly report with the Securities and Exchange Commission because of issues with how it granted stock options.
Quest said its shares are subject to delisting, though they continued trading today. The company received the notice Aug. 14.
Quest said it would request a hearing with a Nasdaq panel to keep its shares trading. The company’s stock was up about 1% Thursday to $13.02.
Earlier this month Quest withheld its second-quarter earnings results, though it gave revenue numbers.
Quest said last month that it planned to restate results from 2000 through the first quarter of this year as part of its ongoing look at stock option grants.
A special committee looking into Quest’s options found that stock compensation expenses should have been recorded for option grants and recognized over the vesting period of the options.
The additional expense “will be significant,” Quest has said.
