Deckers Faces Possible Nasdaq Delisting
Deckers Outdoor Corporation has received a determination letter from the staff of the Nasdaq Stock Market indicating that the company is not in compliance with the SEC filing requirements for continued listing on the Nasdaq Global Select Market. The letter was issued in accordance with Nasdaq procedures due to the delayed filing of the company's Quarterly Report on Form 10-Q for the period ended June 30, 2007. Deckers has undertaken an internal review of employee payroll declarations and certain tax payments that were underreported and underpaid by certain of the company's foreign subsidiaries in foreign jurisdictions, which caused the company to delay its 10-Q filing.
The company has requested a hearing before the Nasdaq Listing Qualifications Panel to review the staff's determination. The hearing request will automatically stay the delisting of the company's common stock, and shares of the company's common stock will continue trading on the Nasdaq Global Select Market, pending the outcome of the Panel's decision. However, there can be no assurance that the Panel will grant the company's request for continued listing as a result of the hearing.
Due to the possibility of a restatement of certain financial information, including prior year financial information necessary for comparison to interim financial data, the company was not able to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2007. The Company intends to file its Quarterly Report for the period ended June 30, 2007 as soon as practicable following the conclusion of the Audit Committee's internal review.