Maxwell Restates Financial Results as a Result of AuditWednesday, March 27, 2013
Maxwell Technologies Inc., the San Diego maker of energy storage and delivery devices used in hybrid buses and other applications, said it has recently been notified by the Nasdaq stock exchange that it’s not in compliance with the listing requirements.
Maxwell, which said it anticipated the Nasdaq notification, has not filed financial reports for its 2012 fourth quarter and the full year. Earlier this month, the company said it had to restate its financial results for the full 2011 year, plus all the quarterly results issued for 2012 because of errors in those reports “related to the timing of recognition of revenue from sales to certain distributors.”
The company revealed the information following an investigation by Maxwell’s audit committee, assisted by an outside law firm and forensic accountants.
“The investigation discovered arrangements with certain distributors regarding the payment terms for sales to such distributors with respect to certain transactions,” the company said in a securities filing.
After the internal probe, Maxwell terminated “certain employees,” and accepted the resignation of its senior vice president of sales, the company said.
On March 18, the firm’s independent accounting firm, McGladrey LLP, resigned.
Maxwell said it believes the restatements will decrease previously reported sales by $6.5 million for fiscal 2011 and by $5.5 million for the first three quarters of 2012.
The Nasdaq letter said Maxwell has until May 20 to submit a plan on how it regains compliance with the exchange’s listing requirements. Should it approve the plan, the company would have 180 days from the due date of its annual financial report or by Sept. 16 to regain compliance, the company said in a securities filing.
Shares of Maxwell, traded under MXWL, have taken a dive since the reporting errors news was first released, falling from about $9 to its recent price at just above $5. Its 52-week range is $4.92 to $18.82.
— Mike Allen