Shares of Synchronoss Technologies (NASDAQ:SNCR) are slumping, adding to a decline that began one week ago. Synchronoss disclosed Wednesday evening that it had received a letter from Nasdaq with an update on its potential suspension. As of 12:15 p.m. EST, the stock was down about 8.5%, after being down as much as 12.4% earlier in the day.
Synchronoss received a letter from Nasdaq on Nov. 20 threatening suspension and delisting. The company has failed to file three separate quarterly reports, and it's still working on the restatement of its financial results for 2015 and 2016. Synchronoss stated on Nov. 20 that it intended to request a hearing.
The letter received on Dec. 6 grants the company's request to extend the stay of suspension pending a hearing before the Nasdaq Hearings Panel in late January 2018. Synchronoss will present its plan to regain compliance at that hearing and request the continued listing of its common stock as it works toward catching up on its filings with the SEC.
This news was expected, but investors still sent shares of Synchronoss lower.
The drama surrounding Synchronoss -- these filing delays, the acquisition of Intralinks, and abrupt executive departures -- has sent the stock tumbling this year. Shares are down more than 75% year to date.
It may still be many months before Synchronoss is up to date on all its filings. Given the slump on Thursday, investors don't seem too keen on sticking around to find out.