Cable-hardware vendor Terayon Communication Systems Inc. was delisted from the NASDAQ exchange Tuesday.
The move came after Terayon said it would not be able to restate its financial statements for fiscal-year 2004 and the first two quarters of fiscal-year 2005 by a March 31 deadline set by NASDAQ. Terayon stock closed at $1.88 per share Monday.
It’s been a long haul for Terayon, which was founded in 1993 by chairman Zaki Rakib and his brother, Shlomo Rakib.
The Rakibs and other Terayon insiders made several millions of dollars by selling stock in 2001 and earlier, when the stock traded at more than $70 per share. For example, in June 2001 -- two months after a class-action suit was filed alleging that insiders sold $439 million in stock at artificially inflated prices -- Zaki and Selim Rakib both sold 50,000 shares at prices ranging from $68.96-$70.35 per share, netting $3.5 million each.