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If you enjoy reading this site, you might also want to check out these Think Services sites:
 Game Career Guide (for student game developers.)
 Indie Games (for independent game players/developers.)
 Finger Gaming (news, reviews, and analysis on iPhone and iPod Touch games.)
 GamerBytes (for the latest console digital download news.)
 Worlds In Motion (discussing the business of online worlds.)
 Game Set Watch (the Group's alt.game weblog.) |
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Activision Faces NASDAQ Delisting Warning
by David Jenkins
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November 17, 2006
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Major North American publisher Activision has received a warning notice from stock exchange NASDAQ, indicating that it is out of compliance with listing standards, due to the late filing of its quarterly report as a stock options investigation continues.
Technically, this means that the company is now in danger of being delisted, but Activision officials have already asked for a hearing before a NASDAQ panel to avoid this, and the company is in no immediate danger of being delisted from NASDAQ, a move that could have a major effect on the firm's stock price.
Although the company recently revealed its preliminary quarterly results, in which revenues were seen to fall to $188.2 million from $222.5 million twelve months previously, its 10-Q financial form has not yet been filed.
Activision claims it will release its full results as soon as possible, after it completes a review of its stock option grant practices, which are currently being investigated by the U.S. Securities and Exchange Commission (SEC). The company’s shares fell by 3.6 percent in aftermarket trading as a result of the news.
Investigations over stock option grant practices have been under way at a number of publishers, most recently with an internal investigation at Take-Two delaying their own 10-Q filing, leading to similar de-listing notices from NASDAQ.
As an Associated Press report explained earlier this year of the problem: "Take-Two is one of a growing number of companies under internal or Securities and Exchange Commission investigations for possible mishandling of stock option grants. Many companies are alleged to have backdated stock option grants to time them at share price lows, thus boosting gains on the sale of the stock."
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