Comverse Technology Inc. and its spinoff Verint said they will be delisted from the Nasdaq exchange after failing to meet financial reporting requirements.
Comverse, which develops voicemail software and other communications technology, has become delinquent in its filings as it investigates past stock-option grants. The company said its shares will be quoted on the Pink Sheets and that its trading symbol will likely remain CMVT or CMVT.PK.
Comverse is one of more than 200 companies to have come under the microscope for questionable practices regarding stock-options grants to top executives. Comverse founder and former chairman Jacob “Kobi” Alexander, who is suspected of benefiting from backdated grants, was a fugitive from justice until his September arrest in Namibia.
“We are committed to regaining compliance with all filing requirements and obtaining relisting of our common stock in a timely manner,” said Comverse Chairman Mark Terrell. Shares of Comverse fell more than 3 percent to $19.26 following the news.
Verint, which also makes communications software, said that its stock will be listed on the Pink Sheets as well. Comverse owns 57 percent of its spinoff company.
Comverse stock headed to Pink Sheets
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