Shares of Synchronoss Technologies (NASDAQ:SNCR) slumped on Thursday after the company said in a press release Wednesday that it would be unable to comply with Nasdaq listing requirements by the May 10 deadline. Synchronoss was threatened with delisting last November after the company failed to file quarterly results with the Securities and Exchange Commission. The stock was down about 18.5% at 12:30 p.m. EDT.
Synchronoss said that it does not expect to regain compliance with the continued listing requirements set by the Nasdaq Hearings Panel prior to the May 10 deadline. The company believes that its auditors are in the final stages of the process, but there remain "some matters" that have taken longer than expected to finalize.
Synchronoss continues to believe that the restatement of its financial results will have no impact on the company's cash position. The company expects to have the audit completed no later than June 30.
"We believe we are strategically well-positioned, and look forward to regaining compliance with our SEC reporting obligations so we can focus our efforts on executing our growth strategy," said Synchronoss president and CEO Glenn Lurie.
The last quarterly or annual report Synchronoss filed with the SEC was way back in February 2017. The company is working to restate its financial results for 2015 and 2016.
Shares of Synchronoss have now tumbled 84% since peaking in late 2016. The stock could fall further if it's ultimately delisted from the Nasdaq. Lurie made sure to point out that the company is in good financial shape despite the ongoing issues: "We have a strong financial profile with ample liquidity. At the end of the first quarter we had approximately $300 million in cash."
That should give investors at least some confidence that the company can ride out this storm.