ComScore, a company that measures web traffic, delayed the filing of their annual report with the Securities and Exchange Commission Monday and now the stock is crashing.
In an 8-k filing Monday, the company said that “certain potential accounting matters” had forced executives to delay the annual report for the fiscal year ending December 31, 2015. Here’s the full explanation from the filing:
On February 19, 2016, the Audit Committee of comScore’s Board of Directors received a message regarding certain potential accounting matters. In response, the Audit Committee immediately commenced a review of the matters with the assistance of independent counsel and advisors. On February 29, 2016, comScore filed a Form 12b-25, Notification of Late Filing, with regard to the foregoing with the Securities and Exchange Commission. At the time of that filing, comScore expected that it would be able to file its Annual Report on Form 10-K within the 15-day extension period provided by the form.
comScore’s Audit Committee continues to work vigorously with its independent counsel and advisors to complete its internal review as soon as possible. On March 5, 2016, however, the Audit Committee advised comScore’s Board of Directors that it did not expect to finalise its review before March 15, 2016. As a result, comScore has not finalised its financial statements pending completion of the review, and it is not in a position to file its Form 10-K until after the Audit Committee completes its review and comScore’s independent public accountants assess the conclusions of the Audit Committee in connection with their audit of comScore’s annual financial statements to be included in its Form 10-K.
In response, the company has suspended it’s share buyback and has moved back it’s investor day indefinitely.
comScore measures viewership and readership across web platforms. The company has also completed an acquisition of TV ratings company Rentrak in January 2016 in order to go head-to-head with with ratings giant Nielsen.
In response to Monday’s news the stock has nosedived, trading down more than 30% early Monday.