Shares of Synchronoss Technologies (NASDAQ:SNCR) plunged Thursday after the company moved a step closer to delisting when it said it would be unable to meet Nasdaq’s listing requirements by today's deadline.
The cloud, messaging and digital services company was first made aware that it was in danger of being delisted in November of last year after it neglected to file its quarterly results with the US Securities and Exchange Commission. The deadline to file results and be in compliance is May 10.
Synchronoss Technologies shares shed nearly 20% to US$7.80 in late afternoon trade.
In a statement, Synchronoss said it is working diligently to complete the restatement of its financial results and to become compliant again with its SEC reporting obligations. The required audit by its accountants is in the “final stages” of being completed and should be finished by the close of June, but there remain “some matters” that are taking longer to finalize.
“We are disappointed in our inability to meet the May 10 deadline for regaining compliance with Nasdaq listing requirements,” said Glenn Lurie, president and chief executive of Synchronoss. “However, we have made tremendous progress and expect that the audit will be completed no later than June 30, 2018.”
Synchronoss still claims that the earnings restatement will not hit its cash pile, which amounted to US$300mln at the close of the first quarter.
With the help of its auditors, the company is working on restating its earnings results for 2015 and 2016. It last filed a quarterly report in February 2017.