NEW YORK-Transcrypt International Inc. last week saw its stock trading suspended on Nasdaq, and the company’s independent auditor resigned.
Coopers & Lybrand L.L.P. resigned as Transcrypt’s independent auditor, effective April 24. “In conjunction with its resignation, Coopers & Lybrand advised (us) that their reports with respect to consolidated financial statements of Transcrypt and its subsidiaries … for the years ended Dec. 31, 1995 and 1996 are withdrawn,” Transcrypt’s announcement said.
The Lincoln, Neb.-based manufacturer of land mobile radios and information security products also said Nasdaq decided to suspend trading its stock. The “temporary qualification trading halt” is in effect at least through May 7, at which time Nasdaq has scheduled a hearing to determine whether to continue listing Transcrypt’s stock on the Nasdaq National Market.
This type of trading suspension, which can last for months or even become permanent, occurs when a company fails to meet any of the criteria for listing and/or the rules of the Nasdaq market, a Nasdaq spokesman said. Regular filing of audited financial statements is one of those rules.
“The company expects to present at this hearing its timetable for filing its annual report on Form 10-K for the year ended Dec. 31 and amending its prior reports with the Securities and Exchange Commission,” Transcrypt said.
Last week, the SEC issued a formal order of investigation into Transcrypt, which has twice delayed filing its Form 10-K because of questionable accounting methods, which also resulted in the company having to restate previous financial results. Also last week, a shareholder lawsuit against the company began in the U.S. District Court of Nebraska.
