Saba Software Inc. (SABA), said Thursday it will be unable to regain compliance with its SEC filing requirements for continued listing of its common stock on the NASDAQ Global Select Market by the April 4 deadline set by stock exchange's panel.
The company reiterated it is not current in its periodic report filing requirements with the SEC as a result of its pending restatement of prior financial results. Saba saod is not in a position to report its financial results for fiscal year 2012 ended May 31, 2012 and the third quarter of fiscal year 2013 ended February 28, 2013.
Saba plans to complete the restatement and regain compliance with its filing requirements as soon as practicable.
"While the company has been working diligently to complete the restatement and regain compliance with its reporting requirements, the company has determined that it will be unable to achieve these objectives prior to the April 4, 2013 deadline," Saba said.
Saba said it has made major progress toward completion of the restatement, including the determination of completion dates for its consulting services arrangements. The finalization of these completion dates is needed to recognize revenue from such arrangements on contract completion, rather than on a proportional performance basis, and complete the restatement.
The company anticipates that the impact of the restatement on its financial statements:
- will change the time period during which the affected revenues, including a portion of the Company's cloud-based subscription services, were recognized, generally shifting the timing of such revenues to later periods;
- will not result in changes in the cumulative revenue to be recognized over the duration of the Company's contractual arrangements; and
- will not result in changes in cumulative cash flow from operations.
In connection with becoming current in its SEC filing requirements, Saba intends to apply for prompt readmission to the NASDAQ so that it can trade on that market as early as possible after regaining compliance with the listing requirements.
Although Saba has set a revised objective to complete the restatement process in the next few months, there are some inherent uncertainties in the amount of time required to complete the work and there can be no assurance that it will be successful in meeting this timing goal, the company said.
Saba anticipates that its shares of common stock will be delisted from the NASDAQ later this week. Following the suspension of trading, the company expects that its shares will trade on the OTC Markets - OTC Pink Tier while it works to finalize the restatement. The company's trading symbol will remain SABA.
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