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Vitesse Semiconductor


will be delisted from the Nasdaq National Market on Wednesday because of delinquent financial statements.

The Camarillo, Calif., chipmaker's stock plunged 33 cents, or 22%, to $1.18 on the news.

"Other than its inability to file financial statements, Vitesse meets all other listing requirements for the Nasdaq National Market," read a statement issued by Vitesse.

The delisting is the latest in a string of bad news to affect the company, as a result of a widening controversy involving the so-called backdating of stock options. Vitesse is under investigation by the

Securities and Exchange Commission's

enforcement division as well as the U.S. attorney's office for the southern district of New York regarding its stock option practices dating back to the late 1990s.

In May, Vitesse fired three of its top executives, including the CEO. The company's stock is down 68% since the beginning of April.

The backdating controversy has embroiled several semiconductor companies, including

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Vitesse said it believes it will trade on the Pink Sheets following its exile from the Nasdaq, and it said it expects that certain firms will continue to make a market in its stock. But the company added that it could not assure either scenario.