BURLINGTON, MASS.—Avid announced that it has received approval to list its common stock on The NASDAQ Stock Market, LLC effective with the open of trading on Monday, Dec. 8, 2014. The company will continue to trade under the symbol AVID.
“We are pleased that Avid stock will once again trade on the NASDAQ,” said John Frederick, executive vice president and chief financial and administrative officer of Avid. “We believe this milestone offers current and future Avid shareholders an exciting opportunity to share in the success of our business through improved access to our common stock. We look forward to generating sustainable, profitable growth as we continue to execute on our plan to unlock the full potential of Avid.”
Avid was delisted from the NASDAQ and went to pink sheets in February after an audit revealed a need for it to restate its financial results starting in 2009. The restatements involved free software updates that should have been included in the financial results and were not. Avid warned shareholders in January of the likely delisting.
“The company has determined that such software updates should have been accounted for as implied post-contract customer support under U.S. Generally Accepted Accounting Principles. As a result of the pending restatement of prior financial results, the company is not current in its periodic report filing requirements with the SEC.“
After combing through “'approximately 5 million transaction lines and 700 software releases,” the company said it did not expect to meet the March 14, 2014, deadline to be in compliance with NASDAQ rules.
The stock dipped below $5 when it was delisted but quickly rebounded to the $7 mark over-the-counter. It showed steady growth on the pink sheets and opened at $14.25 in Monday morning trading. Shares traded at a high of around $66 in February of 2005.
The company, which makes high-end editing and cloud-based media workflow technology, recently reported revenues of $135 million and net income of $8.9 million for the first quarter of 2014.
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