CALABASAS, Calif. -- (BUSINESS WIRE) -- Ixia (NASDAQ: XXIA) announced today that, as expected and due to the previously announced delay in the filing of the company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “Form 10-K”), on March 10, 2014, the company received a notice from The NASDAQ Stock Market LLC (“Nasdaq”) notifying the company that it does not comply with Nasdaq Listing Rule 5250(c)(1). Listing Rule 5250(c)(1) requires listed companies to timely file all required periodic financial reports with the Securities and Exchange Commission. The notice was issued in accordance with standard Nasdaq procedures and has no immediate effect on the listing of the company’s common stock. The company previously received a notice from Nasdaq regarding non-compliance with Listing Rule 5250(c)(1) following its failure to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2013 (the “Form 10-Q”).
The company has until March 18, 2014 to submit to Nasdaq an update to Ixia’s original plan to regain compliance with Listing Rule 5250(c)(1) as submitted to Nasdaq in connection with the Form 10-Q. The updated plan is required to include the company’s plan for filing the Form 10-K as well as an indication of the progress that the company has made towards implementing the original plan. Ixia intends to submit an updated plan to Nasdaq by the specified deadline. Nasdaq previously granted the company an exception until March 18, 2014 to file the Form 10-Q, and the company expects that in the updated plan it will request an extension of that exception.
If Nasdaq accepts the company’s updated plan, any additional Nasdaq exception to allow the company to regain compliance with Listing Rule 5250(c)(1) will be limited to a maximum of 180 days from the original due date for the Form 10-Q filing (i.e., until May 19, 2014). If Nasdaq does not accept the updated plan, then Ixia will have the opportunity to appeal the delisting decision to a Nasdaq Hearings Panel. Under Nasdaq’s rules and procedures, a company’s request for such a hearing is generally due within seven calendar days after receipt of the delisting notification, and such a request automatically stays any delisting (and suspension of trading) for an additional 15 calendar days from the deadline to request a hearing. Upon receiving any such notification, the company intends to request a hearing by the seven calendar day deadline and to request an additional stay beyond the 15 calendar days should it become necessary.
Ixia develops amazing products so its customers can connect the world. Ixia helps its customers provide an always-on user experience through fast, secure delivery of dynamic, connected technologies, and services. Through actionable insights that accelerate and secure application and service delivery, Ixia's customers benefit from faster time to market, optimized application performance and higher-quality deployments. Learn more at http://www.ixiacom.com.
Safe Harbor under the Private Securities Litigation Reform Act of 1995
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the submission of an updated plan to regain compliance with the Nasdaq Listing Rules and regarding an appeal to a Nasdaq Hearings Panel in the event Nasdaq does not approve the company’s updated plan to regain compliance. In some cases, such forward-looking statements can be identified by terms such as may, will, should, expect, plan, believe, estimate, predict, or the like. Such forward-looking statements reflect the current intent, belief, and expectations of our management and are subject to risks and uncertainties that could cause our actual results to differ materially from those expressed or implied in the forward-looking statements. Factors that could cause the actual results to differ materially from the results predicted include, among others, Ixia’s ability to submit an updated compliance plan to Nasdaq on or before March 18, 2014, and, if necessary, to timely appeal any delisting decision to a Nasdaq Hearings Panel and request an extended stay of delisting. Ixia assumes no obligation to update such forward-looking statements except as required by applicable law.