Something appears to be quite amiss at Interwoven. On 15th November a notice of non-compliance was served against the company by NASDAQ. This was for tardy submission of reports and statements within the trading period.

Alone this would not account for much concern. But the company received Staff Determination Letters in March, May, and August 2007 due to its failure to timely file its Annual Report (via Form 10-K) for the year ended December 31, 2006, as well as its Quarterly Reports (via Form 10-Q) for the quarters ended March 31, 2007 and June 30, 2007 (read more here). It was only in April that Interwoven appointed a new CEO (Joseph Cowan) after their previous CEO and founder Martin Brauns departed the company.

The SEC submission delays evidently stem from an ongoing voluntary investigation into stock options procedures. What this all ultimately means is anyone's guess; it may all be resolved quickly and simply a case of clearing out the cobwebs of the previous administration. Many other companies experienced options-dating troubles, though it seems Interwoven is taking unusually long to sort it out. Interwoven says:

"The Company plans to file all of its delinquent periodic reports as soon as practicable after the completion of that voluntary review and the charges to be recorded are finalized in connection with the expected restatement."

We have always counseled that there is no direct relationship between a vendor's stock performance and their products' fit for your needs. But clearly buyers considering a longterm relationship with Interwoven need to use some added caution when dealing with the firm until it resolves these issues.