Computerworld - In the latest development in a string of bad luck for troubled supply chain software maker i2 Technologies Inc., the Nasdaq Stock Market has taken preliminary action to delist the company's stock.
Yesterday, Dallas-based i2 announced that because of an ongoing reaudit of its quarterly and annual finances for the past several years, and its subsequent inability to provide requisite financial data, the Nasdaq had issued a notice of intent to delist it. Last week, while announcing that it was the subject of a U.S. Securities and Exchange Commission investigation related to its accounting practices, i2 also said it anticipated this move (see story).
This is the latest financial obstacle for the troubled applications vendor. On March 31, Nasdaq suspended trading of i2's stock, requesting additional information "concerning the potential scope and magnitude of expected material adjustments to i2's previously reported financial results."
The company said it intends to seek a hearing to appeal the delisting; that hearing typically would occur within 30 days. I2 claimed that it's "working diligently with its independent accountants to accumulate the requested information in as timely a manner as possible.
However, because the reaudits are ongoing and i2 only recently determined that it would expand the reaudits to include its 1999 financial statements, it's not clear the information will be ready for submission prior to the date of the delisting hearing or that the information, once submitted, will be enough to allow Nasdaq or the hearing panel to lift the trading halt.
The company said last week it expects the reaudits to take until June to complete.
The company promised that the financial problems won't affect customers. "I2 is proactively communicating with its installed base about the situation and reassuring them that there will be no disruptions in service and support," said the company in a statement.
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