Thursday, August 17, 2006

Quest Receives Nasdaq Notice, Faces Delisting

Aliso Viejo-based Quest Software said today that it has received a Nasdaq Staff Determination letter, indicating that the firm is not in compliance with continued listing requirements, and is subject to delisting. The firm received the notice because it did not file its 10-Q for the quarter on time. Quest had delayed the filing of its 10-Q due to an ongoing investigation into the firm's stock options grant practices. The firm said in a statement that it will request a hearing before a Nasdaq Listing Qualifications Panel to review the Staff Determination. Quest currently has a special committee looking into its grant practices, and has already said that it will restate its financials between 2000 and 2005. The firm, which is listed on the Nasdaq as QSFT, is among one of the many dozen high tech companies that has been caught up in an industry-wide, stock options backdating scandal.

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