SAN FRANCISCO -- Maxim Integrated Products ( MXIM) has been bounced from the Nasdaq after government regulators denied the company's appeal to keep its listing. The Sunnyvale, Calif., chipmaker said late Monday that its common stock will be suspended from trading as of Tuesday and will subsequently be delisted due to its failure to file timely financial reports since the first quarter of 2006. Maxim said it expects its stock to subsequently begin trading on the Pink Sheets under the new symbol MXIM.PK. The move represents one of the
rare stock delistings triggered by the stock option-backdating scandal. Like scores of other companies suspected of backdating, Maxim has delayed filing its financial reports while it investigates past accounting practices and determines the size of the resulting financial restatements. Under Nasdaq regulations, failure to file financial reports on time are grounds for delisting. But the Nasdaq has shown leniency with many companies whose filings have been delayed by backdating investigations. The Nasdaq board has granted extensions to companies including Marvell ( MRVL), Rambus ( RMBS) and Foundry Networks ( FDRY), among others. Maxim's restatement project appears to be taking significantly longer than some of its peers, however. Nasdaq's board had granted the company until Sept. 25 to get up to date on its filings, but Maxim says it doesn't expect to file its delinquent reports until the first quarter of 2008.
The company had asked the Securities and Exchange Commission to intervene and give it more time, but Maxim said Monday that the commission has turned down its request to stay the Nasdaq's move to delist its shares. Maxim intends to promptly seek to relist its common shares on a national exchange as soon as practical after it completes its restatement and files the missing reports. Shares of Maxim, which closed Monday's regular session down 3.7%, or $1.09, were up 5 cents at $28.31 in extended trading.