PHOENIX - Edgio, Inc. (NASDAQ: EGIO), a company specializing in online content delivery, received a notice from Nasdaq on Monday stating that it is currently not in compliance with the Nasdaq Listing Rule 5250(c)(1). The rule mandates timely filing of annual financial reports, which Edgio has failed to meet by not submitting its Annual Report for the fiscal year ending December 31, 2023.
The delay in filing the Annual Report is attributed to the resignation of the company's previous independent registered public accounting firm on December 18, 2023. Although a new firm was engaged in the first quarter of 2024, additional time is required to complete the necessary procedures for the annual report filing.
The notice does not immediately affect the trading of Edgio's common stock on the Nasdaq Capital Market. However, the company must submit a plan to regain compliance within 60 calendar days, by June 3, 2024. If the plan is accepted, Nasdaq may allow an extension until September 30, 2024, for the company to file its Annual Report and regain compliance.
Edgio has expressed its commitment to finalizing and filing the Annual Report as soon as possible. The company has been working diligently to resolve this issue and comply with Nasdaq's requirements.
The company, known for its edge network and integrated application and media solutions, aims to enable faster, safer, and more controlled online experiences and content delivery.
This information is based on a press release statement from Edgio, Inc.
InvestingPro Insights
As Edgio, Inc. (NASDAQ: EGIO) navigates through its recent compliance hiccup with Nasdaq, it's important to look at the company's financial health and market performance to understand the broader context. According to real-time data from InvestingPro, Edgio is currently operating with a market capitalization of $72.02 million. This valuation comes at a time when the company is experiencing significant revenue growth of 46.16% over the last twelve months as of Q1 2023, despite a quarterly revenue contraction of 12.45% in Q1 2023.
The company's Price / Book multiple as of the last twelve months stands at 0.47, which indicates that the stock may be undervalued relative to the company's book value, potentially offering an attractive entry point for investors. However, this must be weighed against the company's significant debt burden and the challenges it faces in terms of cash flow and profitability. Edgio's operating income margin for the same period was -28.11%, reflecting the financial pressures the company is under.
InvestingPro Tips suggest caution due to Edgio's high debt levels and the risk of not being able to meet its interest payments. Additionally, the company has been quickly burning through cash, which could further impact its financial stability. These factors are crucial for investors to consider, especially in light of the company's current non-compliance issue with Nasdaq.
For those interested in a deeper dive into Edgio's financials and additional strategic insights, InvestingPro offers more tips, including an analysis of the stock's volatility and the implications of its Price / Book multiple. To access these insights and more, visit InvestingPro and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 14 additional InvestingPro Tips available for Edgio, Inc., which could help investors make more informed decisions.
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