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Cidco faces delisting over accounting

The maker of the Mivo and MailStation Internet appliances faces delisting from the Nasdaq because of accounting problems.

Cidco, maker of the Mivo and MailStation Internet appliances, said Tuesday that it faces delisting from the Nasdaq because of accounting problems.

The Morgan Hill, Calif.-based company has received a notice from the Nasdaq that it will be delisted because it has delayed reporting its earnings for the latest quarter, which ended March 31. However, Cidco said in a statement that it is seeking a hearing to appeal the move to delist its stock.

In a May 16 filing with the Securities and Exchange Commission, Cidco said it was delaying the filing of its results because it has not completed an audit into the finances of its now discontinued telecommunications equipment business. Cidco, which first warned of possible accounting problems in late April, said in the May filing it expected the audit would find that the company had underreported its liabilities and the previously reported cost of goods in the telecom gear business.

The company, which got its start making caller ID boxes for telephones, has been looking to revamp itself into solely a maker of Net appliances. In April, the company said it had about 100,000 subscribers for its devices, which are primarily used to send and receive e-mail.

The company said in February that it was trimming its advertising budget in an effort to try to lower the number of subscribers it would take for the company to break even.

In addition, the company said Tuesday that the Nasdaq has added the letter "E" to Cidco's ticker symbol because of the delay in filing its earnings. Cidco will trade under the symbol "CDCOE" pending the Nasdaq's decision on delisting.

A Cidco representative was not immediately available to comment.