NASDAQ says it should have been clear to the Danish company at an earlier stage that its projections would not be met.
In a press release, Pandora said it announced on Aug. 2 it would fall short of its forecast for the year, releasing a condensed financial report for the second quarter two weeks ahead of the Aug. 16 deadline.
Pandora says it believes it “acted properly during a swift and unexpected downturn in sales by making a timely and precise announcement adjusting its annual forecast in light of new information and based on an analysis of the changing market dynamics in July 2011.”
In addition, the company says it has been in full compliance with the exchange’s rules for issuers of shares.
The company says that at the beginning of last July, year-to-date revenue was up 22 per cent against the same period in 2010 and the numbers indicated it would meet the 30 per cent revenue growth forecasted for the year. However, revenues quickly worsened, dropping more than 30 per cent for that month.
“The position at the end of July 2011 caused Pandora to conclude it would not be able to meet its full-year guidance and, upon this becoming clear, Pandora acted decisively and in a timely manner by announcing the lowering of its full-year financial expectations on Aug. 2,” it said in the news release.
