Quest Software, Inc. (Nasdaq: QSFT)
today announced preliminary unaudited financial information for the
third quarter ended September 30, 2007. As previously announced, Quest
has determined that it will restate its financial results for periods
through March 31, 2006, to account for findings of a now-completed
investigation into the company's stock option grant practices conducted
by an independent Special Committee.
Quest also announced, as expected, that it received another Nasdaq staff
determination letter on November 13, 2007, indicating that Quest is not
in compliance with the continued listing requirement set forth in Nasdaq
Marketplace Rule 4310(c)(14). The letter was issued in accordance with
Nasdaq procedures when Quest did not file its Quarterly Report on Form
10-Q for the period ended September 30, 2007 with the Securities and
Exchange Commission by the filing deadline. The company has been given
additional time from Nasdaq in order to file all delinquent SEC reports
and currently anticipates that it will complete its restatement and
related SEC filings by December 31, 2007.
Preliminary Operating Results for Third Quarter
Quest is providing certain unaudited preliminary revenue and balance
sheet information as follows (in thousands):
Sept. 30,2006
June 30,2007
Sept. 30,2007
Revenues:
Licenses
$
67,849
$
65,752
$
70,888
Services
68,866
76,507
82,515
Total Revenues
$ 136,715 $ 142,259 $ 153,403
Cash, cash equivalents and marketable securities
$ 320,650 $ 423,582 $ 366,058
(1)
(1) In August 2007 we acquired ScriptLogic Corporation, a
privately held company that provides systems lifecycle management
solutions for Windows-based networks. Quest used $77.4 million of
cash, net of cash acquired, to complete this acquisition.
All financial results described in this release should be considered
preliminary, and are subject to change to reflect any necessary
corrections or adjustments, or changes in accounting estimates, that are
identified prior to the time the company completes the restatement and
files its delinquent SEC reports.
Status of Proceedings with Nasdaq
Due to the stock option investigation, the resulting determination to
restate prior period financial statements and the company’s
internal accounting review, Quest has not filed its Quarterly Reports on
Form 10-Q for the second or third quarters of 2006 or the first, second
or third quarters of 2007, and has not filed its Annual Report on Form
10-K for the year ended December 31, 2006. As previously disclosed, the
Board of Directors of The Nasdaq Stock Market provided the company until
November 14, 2007 to file all delinquent periodic reports necessary to
regain compliance with Nasdaq’s filing
requirements. The company recently advised Nasdaq that it will not be
able to satisfy this requirement and requested additional time in order
to file all delinquent reports. On November 9, 2007, the company was
advised of the Nasdaq Board’s decision to
extend the company’s filing deadline until
January 9, 2008. There can be no assurance that Nasdaq will provide the
company with any additional time, if necessary, or that the company’s
Common Stock will remain listed on the Nasdaq Global Select Market.
About Quest Software, Inc.
Quest Software, Inc. delivers innovative products that help
organizations get more performance and productivity from their
applications, databases and Windows infrastructure. Through a deep
expertise in IT operations and a continued focus on what works best,
Quest helps more than 50,000 customers worldwide meet higher
expectations for enterprise IT. Quest Software can be found in offices
around the globe and at www.quest.com.
Quest and Quest Software are registered trademarks of Quest Software,
Inc. The Quest Software logo and all other Quest Software product or
service names and slogans are registered trademarks or trademarks of
Quest Software, Inc. All other trademarks and registered trademarks are
property of their respective owners. Forward Looking Statements
This press release contains forward-looking statements, including,
without limitation, statements related to the company’s
preliminary unaudited financial information and the currently
anticipated timing of completion of Quest’s
accounting restatement and filings of related periodic reports, as well
as statements concerning Nasdaq listing proceedings and potential
delisting of Quest’s common stock from the
Nasdaq Global Select Market. These forward-looking statements are based
upon the company's current expectations and involve various risks and
uncertainties. In particular, the company may be required to make
adjustments to its unaudited preliminary third quarter results, as well
as to its financial results previously reported for prior periods, and
the company’s independent registered public
accounting firm must complete its audit and review procedures for all
periods. Further risks may arise from the stock option investigation and
related matters, including but not limited to, potential fines and
penalties, further disruption to Quest’s
business and significant legal, accounting, tax and other expenses. The
company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements
contained herein except as required by law.
Web Links Referenced in this Release:
Quest Software, Inc. – www.quest.com
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