Deckers Faces Possible Nasdaq Delisting…

Deckers Outdoor Corporation received a 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 due to the delayed filing of the company's Quarterly Report for the second quarter. According to Decker’s, this action was expected, because the company 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.

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Teresa Hartford

Teresa Hartford Group Publisher & Creative Director | SGB Media teresa@sgbonline.com | 704.651.5741

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.


The company 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. Based upon the Audit Committee's investigation to date, the company believes that the inadequate declarations and underpayments did not exceed $500,000 in any given year and $2.7 million in the aggregate and that interest and penalties with respect thereto could range from $3.3 million to $15.4 million. However, the Audit Committee has not yet completed the internal review or determined whether, or in what amounts, the underpayments will result in any government action or whether any past due interest, fines or other penalties will be imposed. As a result, the company has not made a final determination as to whether a restatement of any of its historical financial statements is necessary.

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.

About The Author

Teresa Hartford

Teresa Hartford Group Publisher & Creative Director | SGB Media teresa@sgbonline.com | 704.651.5741

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