Obviously they are stalling for time to either line up a new bank credit line or a fire sale buyer. In any event, it does not take this long to close the books, they only need to focus on the areas that need review, not every entry was wrong, and they do have staff and a CFO to complete the accounting on a very timely basis especially if they had done a lot of close work prior to the issues raised. So, bottom line is that they are worried that the numbers won't be pretty at all and they are in trouble, so delay is the strategy until some sort of lifeline can be extended or the company realizes it needs to file a chapter 11 or 7 immediately.
De-listing does not concern them right now because they probably will be anyway if the numbers are so bad that the stock price falls below the listing requirements. The CEO probably does not need the money so he is doing this because of a feeling of responsibility having been on the board and allowing this to unfold on his watch. He also could be sued and he knows it, so he is trying to show good faith and competence now, a little bit too late in my opinion.
I am not a basher, I am not a short, I am just trying to be realistic. This company has caused a lot of financial pain due to their game playing and maybe dishonesty. They considered themselves above the rules of the game and decided to play by their own rules, and they now see what that caused. Those at the top ought to be worried because there is a lot more at stake against them than just a failed company.
Theory: A buyout by STX failed due to the condition of the books/inventory. They are getting it squared away and will need to renegotiate based on the results. When they are able to report the status, they will also be able to report the sale. Maybe at the end of the month?
I think there are many reasons for the delay. At this point they are coming into the most important sellling season of the year and my guess is that they are trying to liquidate inventory with the lowest possible markdowns to raise cash. In addition I think they will downsize the business to approx., half it's size and show a huige loss for the QE 2 and show a cleaned up company with somewhat decent numbers for QE 3 with good gudiance based on the downsizing of the company going forward.. As far as cash and a/r they should be in decent shape with the sell off of inventory say
to account for 50% of there sales and new products they will cap there loss for QE 3 . Writing down their goodwill to a more palative number is just a paper transaction that does not have any effect on there cash flow or profit. There are so many if's in this equation plus the fact I think the bank will go along with them if they a show a reasonable plan that this company can emerge clean, mean and lean. With the new products they are adding the cuts in labor, R &D etc., they could come back as a real going concern but scaled down for now. I just hope that the previous CEO did not run this with smoke and mirrors which would then de disastrous. I think there probelms are solveable. I do not think they are a candidate for BK at this point unless all the numbers we were getting with total #$%$. The hit is going to come on the p/l and also on the balance sheet thus lowering the book value substantially. That's my guess, but I think they could come out of this as they do have a strong sales stream right now.