SST Announces Receipt of NASDAQ Notice
SST (Silicon Storage Technology, Inc.) (NASDAQ: SSTI) today announced that it has received a NASDAQ Staff Determination letter dated November 13, 2007 indicating that SST is not in compliance with the filing requirements for continued listing as set forth in Marketplace Rule 4310(c)(14) because SST has not filed its Quarterly Report on Form 10-Q for the quarter ended September 30, 2007. On April 26, 2007 SST attended a hearing before a NASDAQ Listing Qualifications Panel in connection with the delay in the filing of SSTís Annual Report on Form 10-K for the year ended December 31, 2006. The filing of SSTís Quarterly Reports on Form 10-Q for the quarters ended March 31, 2007 and June 30, 2007 has also been delayed and SST has subsequently provided the Panel with additional information to consider in rendering its decision. Pending a decision by the Panel, SSTís shares will remain listed on the NASDAQ Global Market.
At this time, the chairman of the audit committee of the board of directors has substantially completed a review of the companyís historical stock option practices and related accounting matters covering the time from SSTís initial public offering in 1995 through the current fiscal year with the assistance of independent legal counsel and outside accounting experts. As previously announced, the chairman of the audit committee has preliminarily determined that SSTís previously-issued financial statements for the fiscal years 1997 through 2005 and for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006 will need to be restated to correct errors related to accounting for stock-based compensation expense.
The stock-based compensation charges incurred will have the effect of decreasing reported net income or increasing reported loss from operations and decreasing the reported retained earnings figures contained in SSTís historical financial statements for the periods noted above. SST does not expect that the anticipated restatements will have any impact on its historical revenues or cash position for any period.
SST intends to file its restated financial statements and its delinquent Annual Report for the year ended December 31, 2006 and delinquent Quarterly Reports for the quarters ended March 31, 2007, June 30, 2007 and September 30, 2007 by the end of 2007. SST continues to provide NASDAQ with information regarding the progress of its restatement and intention to hold its 2007 annual meeting of shareholders as soon as possible following the filing of its restated financial statements and delinquent reports with the Securities and Exchange Commission. The NASDAQ Listing Qualifications Council has granted SST an exception to demonstrate compliance with all the continued listing requirements until January 18, 2008.
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