Taleo shares slide after earnings report delay

The stock fell $3.06, or 28 percent, to $7.99. The previous 52-week low was $10.88. The annual high is $34.20.

The staffing management software company said Monday that it had notified the Securities and Exchange Commission it would not meet the Nov. 10 due date to file its quarterly statement. Taleo's auditor, Deloitte & Touche LLP, requested on Nov. 6 that the company review the way it recognizes sales.

"Our auditors have asked us to re-evaluate the timing of certain elements of our revenue recognition," Taleo's chief executive, Mike Gregoire, said in a statement. "This is a timing issue, and does not impact the total amount of revenue that Taleo has under contract."

Nevertheless, Oppenheimer & Co. analyst Brad Reback downgraded the stock to "Perform," from "Outperform," concerned that Taleo may need to restate its revenue and earnings.

"It has been our experience that accounting reviews rarely result in a rapid, favorable resolution with minimal expense," he said in a note to clients.

Andrey Glukhov, an analyst for Brean Murray, Carret & Co., took a similar view: "We believe that maintaining the status quo as a result of this examination is unlikely and Taleo would ultimately have to go through a restatement."