Creative Technology has made news in recent months for its collaborative efforts with Auzentech X-Fi Prelude 7.1, the new Sound Blaster X-Fi Extreme Audio Notebook card and the $39.99 ZEN Stone that competes with Apple’s iPod Shuffle. Today the company is making news for something that isn't product related.
Creative Technology announced today that it will voluntarily delist its Ordinary Shares from NASDAQ on August 1, 2007. The company is currently in the process of making sure that it complies with all Securities and Exchange Commission (SEC) regulations before it reaches the deadline.
Creative cites two reasons for the removing its listings from the NASDAQ. The company has seen a significant number of trades on the Singapore Exchange Securities Trading Limited (SGX-ST) -- far outweighing those on NASDAQ. NASDAQ daily trading has only accounted for 10 percent by volume for the past three months.
Also, Creative notes that administrative overhead associated with continuing listing on NASDAQ in addition to what it calls "evolving and increasingly burdensome U.S. reporting obligations" has shown little return for the company.
According to Creative, it will continue to list its Ordinary Shares on the SGX-ST in Singapore.
Although Creative doesn't come out and say it, all signs point to Sarbanes-Oxley Act of 2002 (SOX) for the delisting. SOX was put in place after huge corporate accounting scandals involving the likes of Enron, Tyco and WorldCom rocked the United States.