comScore Warns of Possible Stock Delisting

comScore has announced that it is unable to meet the February 23rd deadline to file late financial reports and regain compliance with Nasdaq's listing requirements, and warns that this may result in its stock being delisted from the exchange.

Last March, comScore revealed it was investigating irregularities in its accounts. It released the results of this investigation in September, having failed to file reports in the meantime and been threatened with suspension by the exchange. The audit committee concluded that the company's consolidated financial statements for years ended December 31st, 2014 and 2013 - as well as its quarterly and annual statements for 2015 - should 'no longer be relied upon', and the company restated revenue and operating loss figures for those periods. In September, Nasdaq's Listing Qualifications Department warned comScore its shares would be delisted, but the company appealed and was given until February 23rd 2017 to regain compliance - Nasdaq said at the time that this was the 'maximum amount of discretion' it could give.

The company has now had to notify the Nasdaq Hearings Panel that it will be unable to regain compliance by the deadline. According to comScore, the delay primarily relates to the amount of work that it needs to perform in order to review the company's accounting judgements and estimates for transactions in 2013-2016. The firm says it has made 'good progress', but the work has taken longer than anticipated. comScore now hopes it will complete the reinstatement by the summer, and become current in filing all of its required SEC periodic reports, although it still says there can be no assurance that the process will be completed by that time.

As a result of missing the agreed deadline, comScore's common stock may be suspended from trading on Nasdaq, and transferred to the OTC Markets. Gian Fulgoni (pictured), co-founder and CEO, stated: 'Although we are disappointed that we will not meet Nasdaq's deadline, we have made significant progress towards the restatement and in strengthening our internal audit and compliance functions'.

Web site: www.comscore.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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