Broadcom Gets Delisting Note

Broadcom(BRCM Quote) joined the growing club of companies at risk of getting delisted because of filing delinquencies, the chipmaker announced late Friday.

Broadcom said it received a notice from Nasdaq on Monday stating that it was not in compliance with the exchange's regulations regarding the timely filing of reports.

Broadcom said it would seek to appeal the finding by requesting a hearing before a special Nasdaq panel.

Irvine, Calif.-based Broadcom said in July that an internal investigation had discovered certain discrepancies in its stock-option grants between 2000 and 2002, which the company estimated will result in a noncash expense in excess of $750 million.

The company said it expected to restate several years of financial results and that it would not be able to file its second-quarter report on time due to the ongoing investigation.

Dozens of companies that have had to delay their filings as they look into past option practices have received similar notices from Nasdaq. Under Nasdaq regulations, any delay beyond the timelines set by the SEC for filing quarterly and annual reports triggers an automatic delisting notice.

Nasdaq has delisted Mercury Interactive(MERQ Quote) and Vitesse Semiconductor(VTSS Quote), although it granted chipmaker Altera(ALTR Quote) a conditional listing after the company's appeal to the Nasdaq panel in June.

Shares of Broadcom, which closed the regular trading session down 5 cents at $30, were unchanged in extended trading.