Shares in market research group ComScore Inc (NASDAQ:SCOR) plunged after it said it would not meet a deadline to comply with Nasdaq's listing requirements.
The delay primarily relates to the amount of work that the company needs to perform in order to review the company's accounting judgments and estimates for transactions that occurred during 2013-2016.
ComScore said it had made good progress on this work, but it had all taken longer than anticipated.
The company is targeting the summer of 2017 to complete the restatement and become current in filing all of its required SEC periodic reports, although there can be no assurance that the process will be completed by that time, it told investors.
Shares were off 22% on early trading on the Nasdaq exchange. The company has until 23 February to regain compliance with the exchange's reporting requirements.
Barring another extension of the deadline, comScore's listing on Nasdaq will be suspended. The company said its fall-back plan is for the shares to be traded on over-the-counter markets.
"Although we are disappointed that we will not meet Nasdaq's deadline, we have made significant progress towards the restatement and in strengthening our internal audit and compliance functions. Furthermore, our business fundamentals continue to be strong, underscored by our healthy balance sheet with $116 million in cash,” said Gian Fulgoni, co-founder of comScore and the company's chief executive.
“We are confident in our strategy, our roadmap for innovation, our unique data and technology assets, and in the value we deliver to more than 3,000 clients, all of which we believe will drive long-term growth for our company," he added.