Saba (NASDAQ:SABA), the premier provider of people-centric enterprise solutions, today announced that on January 14, 2013, Saba received from the Listing Qualifications Department of The NASDAQ Stock Market LLC notification of Saba’s continued noncompliance with NASDAQ Listing Rule 5250(c)(1) due to Saba’s delay in filing its Form 10-Q for the second quarter ended November 30, 2012.
As previously reported, on December 21, 2012, Saba received from the NASDAQ Hearings Panel a decision granting Saba’s request for continued listing on The NASDAQ Stock Market until April 4, 2013. It is a condition to Saba’s continued listing that Saba regain compliance with all applicable requirements for continued listing on The NASDAQ Stock Market on or prior to April 4, 2013, including completion of the previously announced restatement of its historical financial statements and filing with the SEC of all outstanding annual and periodic reports.
In response to the letter from NASDAQ, Saba will supply additional information to NASDAQ regarding the Company’s ongoing progress with the restatement and its plan of compliance.
Change in Certifying Public Accountant Upon Completion of Restatement
On January 14, 2013, Saba was advised by Ernst & Young LLP (“Ernst & Young”), Saba’s current independent registered public accounting firm, that it will resign as Saba’s independent registered public accounting firm effective upon completion of the audit for the fiscal year ended May 31, 2012, including the restatement of the financial statements for the fiscal years ended May 31, 2011 and 2010, and completion of their review of the Company’s unaudited financial statements for the three months ended August 31, 2012 and for the six months ended November 30, 2012.
As previously announced, there is a pending restatement of previously issued financial statements for the fiscal years ended May 31, 2008, 2009, 2010 and 2011. Because of the pending restatement, these financial statements and the related audit reports of Ernst & Young have been withdrawn and should no longer be relied upon. When originally issued, Ernst & Young’s audit reports on these financial statement did not contain any adverse opinion or disclaimer of opinion and such reports were not qualified or modified as to any issues of uncertainty, audit scope or accounting principles.