Nearly three weeks after KIT Digital said it would restate three years of earnings reports because of accounting mistakes, the video software provider said late Monday that NASDAQ would delist its stock.
KIT, whose customers include MTV, News Corp. (Nasdaq: NWSA), Verizon (NYSE: VZ) and AT&T (NYSE: T), said NASDAQ delisted its stock because it failed to file a 10-Q report with the Securities and Exchange Commission for the quarter ending Sept. 30. Last month, KIT announced that it planned to restate earnings reports from 2009, 2010 and 2011 primarily because of "accounting errors and irregularities" related to the "recognition of revenue related to certain perpetual software license agreements" signed by its previous management team.
Prague-based KIT has seen a management upheaval this year. In March, CEO Kaleil Tuzman resigned, and the company named Barak Bar-Cohen interim CEO. In August, board member K. Peter Heiland replaced Bar-Cohen as interim CEO.
KIT said last month that it is looking at "strategic alternatives" because of costs it will incur from the accounting errors, restructuring expenses and litigation. The company added it is considering "financing transactions as well as other strategic transactions including a sale of the company or its assets."
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