Measurement company comScore said it would be delayed in filing its 10-Q quarterly financial statements with the Securities and Exchange Commission, but added that an internal investigation surrounding some past accounting irregularities should be completed next month.
ComScore said back in March that it had identified some “potential accounting matters” and would not be able to file its 10-K annual report with the SEC in the prescribed time. The company said the Audit Committee of its board of directors would begin an investigation into the matter and report back its findings at a later date. According to a May 11 filing with the SEC, the committee should make those findings known by June 27.
The delay in the 10-Q filing is tied to the 10-K accounting matters. In the May 11 SEC filing, comScore said it couldn’t file the 10-Q until it had completed the review of the 10-K issues.
In a note to clients, Telsey Advisory Group media analyst Tom Eagan said the timing was important because the 60-day shot clock to submit an acceptable plan to file the 10-K expires on May 15. That comScore has said it plans to file an “informed update,” means that while the 10-K probably won’t be filed at that time, the company has at least made enough progress where it would offer more clarity to investors around the accounting issues.
“This is important because it suggests to us that [comScore] has an ‘accepted plan’ regarding its 10-K filing with NASDAQ,” Eagan wrote. “Having an accepted plan is crucial because without it, [comScore] would face a delinquency notice and a de-listing by next week.”
ComScore shares were down about 0.5% (14 cents each) to $28.11 per share in afternoon trading Thursday.
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