After losing more than 90 percent of its stock value this year, Peregrine now faces a possbile NASDAQ delisting.
Beleaguered software maker Peregrine Systems Inc. is in more hot water. The San Diego, Calif.-based company announced today that NASDAQ intends to delist Peregrines stock at the opening of business on July 5.
To stop the delisting, Peregrine must request a hearing before the NASDAQ Listing Qualifications Panel.
Peregrine officials said in a press release that the company will "avail itself of the prescribed process" to maintain its listing on the technology stocks index.
Currently, Peregrine is out of compliance with NASDAQ Marketplace rules, as a result of its April announcement that Arthur Andersen LLP had notified Peregrines board that it could not complete its independent audit of the company (Arthur Andersen was dealing with its own mess relating to Enron.)
Peregrine found it was looking at accounting improprieties that could amount to $100 million, and the restatement of its 2000 and 2001 earnings.
Peregrine fired Anderson in early spring, hired KPMG, and fired that consulting group several months later, in May, when it learned that KPMG and KPMG Consulting might be responsible for about $35 of the $100 million in accounting improprieties at Peregrine.
NASDAQs Marketplace Rules require that all SEC reports be filed with NASDAQ on a timely basis. Given Peregrines restatement, that rules been technically rebuffed.
In the meantime, Peregrine has lost and gained a CEO and CFO
, and hired a third independent auditor, Pricewaterhouse Coopers.
Peregrines stock lost over 90 percent of its value this year.
Peregrine also announced today that it completed the sale of its Supply Chain Enablement business to Golden Gate Capital LLC. The sale will help the company regain some of its lost financial footing and focus more on asset management, officials said.
The SCE line, made up of technology from Peregrines earlier acquisitions of Harbinger Corp. and Extricity Inc., sold for about $35 million in cash, according to officials.
Peregrine will retain some of the integration technology acquired through Extricity and license that to the SCE business.
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