Bell Microproducts could be delisted by Nasdaq by March 17 if the company does not regain
compliance with the market's filing requirement.
The
San Jose, Calif.-based distributor said Monday that it "will be difficult to achieve compliance" due to the scope of the work to be completed.
According to Nasdaq, Bell Microproducts has not complied with a rule that requires that the company furnish Nasdaq with periodic reports, and with rules that require the company to hold an annual meeting of shareholders within one year after the end of each fiscal year and solicit proxies and provide proxy statements, respectively.
A special committee of the company's board of directors is working with outside accounting consultants to review historical accounting practices, according to Bell Microproducts.
"The special committee intends to review the results of the company's work when it is completed, conduct additional procedures as part of its ongoing review, and report the special committee's final conclusions regarding the causes and responsibility for the previously reported errors in accounting practices. At that time, the special committee will determine if additional remedial actions or disclosures are required," the company said in a statement.
Bell Microproducts has not filed financial documents with the Securities and Exchange Commission since the third fiscal quarter of 2006 due to an accounting review. The company has received at least three extensions from Nasdaq.
