PHOENIX - Edgio, Inc. (NASDAQ:EGIO), a company specializing in online content delivery, has received a notice from The Nasdaq Stock Market LLC indicating non-compliance with its listing rules due to a delay in filing its quarterly financial report. The notice, received on May 16, 2024, follows the resignation of the company's independent accounting firm in December 2023.
The company had previously alerted the Securities and Exchange Commission (SEC) of its inability to file the required Form 10-Q for the quarter ending March 31, 2024, on time. This delay was attributed to the time required to engage a new independent accounting firm and the subsequent additional time needed to complete necessary procedures for annual and quarterly reporting.
Nasdaq's notice outlines that Edgio must revise its compliance plan to regain adherence to the Listing Rule 5250(c)(1). If the plan is accepted, Nasdaq may allow up to 180 days from the original due date of the annual report, extending the deadline to September 30, 2024, for the company to file its overdue reports and return to compliance.
Edgio is working to expedite the completion and filing of its quarterly report. However, due to the focus on finalizing the annual report, the process for the quarterly report has been delayed. The company intends to file both the annual and quarterly reports as soon as possible.
This press release contains forward-looking statements, which are subject to risks and uncertainties. The company cautions that actual results could differ materially from those anticipated in these statements due to various factors, including those detailed in the SEC filings under the "Risk Factors" section.
The information provided in this press release is based on a press release statement and is current as of May 21, 2024. Edgio has not updated this information and has no obligation to do so, except as required by law. For more information on Edgio and its services, interested parties can visit the company's investor relations website.
InvestingPro Insights
As Edgio, Inc. (NASDAQ:EGIO) navigates through its current compliance challenges with Nasdaq, it's critical to consider the company's financial health and market performance. Edgio's market capitalization stands at a modest $61.89 million, reflecting the scale of the company in the competitive online content delivery sector. Despite a notable revenue growth of 46.16% over the last twelve months as of Q1 2023, the company's financials show signs of strain, with an operating income margin of -28.11% indicating operational challenges.
Investors should note that Edgio's stock has experienced a significant return over the last week, with an 8.09% price total return, and an even stronger return over the last three months at 21.67%. However, these short-term gains contrast with a more troubling six-month performance, where the stock took a hit with a -47.29% price total return. The company's Price / Book multiple as of Q1 2023 is at a low of 0.4, potentially signifying undervaluation relative to its assets, which could interest value-oriented investors.
Two InvestingPro Tips that are particularly relevant for Edgio are its significant debt burden and the difficulty in making interest payments on this debt. This financial leverage is a critical factor for stakeholders considering the implications of the company's delayed financial reporting. For those seeking a deeper dive into Edgio's financials and future prospects, there are 13 additional InvestingPro Tips available at InvestingPro. Subscribers can use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, accessing a wealth of professional investment insights.
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