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Sycamore Stays Listed

Shares perk up as Nasdaq decides to stop sending delisting messages to Sycamore

August 2, 2007

1 Min Read
Sycamore Stays Listed

Sycamore Networks Inc. (Nasdaq: SCMR) stock rose nearly 6 percent after hours yesterday as the company got back in compliance with Nasdaq rules. (See Sycamore Still Listed.)

Like a lot of tech companies, Sycamore has delayed its earnings reports while undergoing an investigation of its stock options policies. Those delays triggered delisting warnings from Nasdaq, which has been granting stays to the companies affected. (See Nasdaq Warns Sycamore, Sycamore Granted Stay, Sycamore Receives Notice, Sycamore Gets Extension, and Nasdaq Warns Sycamore.)

Sycamore got a letter from Nasdaq yesterday saying the company was back in compliance with filing rules. Sycamore did that with a $215.6 million restatement announced in June, after an audit of the company's stock option grants revealed that its former chief financial officer deliberately altered option grant dates. (See More Rotten Bark From Sycamore.)

Sycamore shares were up 23 cents (5.6%) at $4.38 in early after-hours trading.

Sycamore has investigated its own options practices twice, focusing on grants during 1999 through 2001. The most recent audit began in June 2006 afer the SEC launched an investigation into Sycamore.

Sycamore has said it intends to file its earnings for the fiscal year ended July 31, 2006, "as soon as practicable." The filing will include restated results for the years ended July 31, 2005 and July 31, 2004, plus restatement of selected data for fiscal years 2003 and 2002.

Earlier this month, Sycamore released results for its third quarter, which ended April 28, reporting net income of $6.7 million, or $0.02 per share, on revenues of $43.5 million. That compared with net income of $10.5 million, or $0.04 per share, on sales of $22.9 million for the same quarter a year ago. (See Sycamore Reports on Q3.)

— Ryan Lawler, Reporter, Light Reading

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