Autodesk's (NASDAQ:ADSK) stock dropped more than 5% in premarket trading Wednesday following the company's announcement that it would not submit its annual report within the 15-day extension period.
The delay is due to ongoing investigations into the company’s free cash flow and non-GAAP operating margin practices.
Autodesk expects that it will be notified by Nasdaq of its failure to meet the exchange's timely filing requirements for continued listing.
The company stated such notice isn’t expected to have an immediate effect on the listing or trading on the Nasdaq Global Select Market. Despite this setback, the software maker remains on the Nasdaq Global Select Market, and trading of its shares continues uninterrupted.
After receiving the expected notification, Autodesk will have 60 calendar days to submit a plan for regaining compliance.
The company plans to adopt the necessary measures to regain compliance “as soon as practicable.”