Ditech Networks Gets Delisting Notice

It follows a failure to file its most recent financial report.
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Ditech Networks

(DITC)

has received a notice that its stock risks being delisted, due to the company's failure to file its most recent financial report on time.

The Mountain View, Calif., maker of voice processing equipment for telecommunications networks, received a delisting notice from

Nasdaq

on Wednesday, according to a Nasdaq compendium of recently issued delisting notices.

Ditech Networks, which is among more than 100 companies under scrutiny for past stock option accounting practices, had yet to announce receipt of the notice on Tuesday.

Representatives of the company were not immediately available for comment.

Earlier this month, Ditech Networks indicated that it would be late filing its financial report for the period ended Oct. 31, but said that it hoped to file the report within the extension period permitted under Nasdaq rules.

Ditech said at the time that an internal review of past stock option grants has identified "non-material errors of approximately $1 million in non-cash expense for certain periods." The ongoing review has delayed the completion of certain procedures necessary for finalization of the quarterly financial report, according to the company.

Under Nasdaq regulations, any delay in filing periodic financial reports on time automatically triggers a delisting notice, which a company can appeal before a special Nasdaq panel.

Shares of Ditech were up 2 cents, at $6.97 in light trading Tuesday.