Wegener delists from Nasdaq

Satellite broadcast equipment developer Wegener Corporation has been delisted from the Nasdaq stock exchange. The company subsequently began trading on the Over the Counter Bulletin Board (OTCBB) from April 22.
The move was the result of a decision by…

Satellite broadcast equipment developer Wegener Corporation has been delisted from the Nasdaq stock exchange. The company subsequently began trading on the Over the Counter Bulletin Board (OTCBB) from April 22.

The move was the result of a decision by the Nasdaq Hearings Panel in mid-April to remove Wegener for the exchange and brings to an end a process has that first started in August 2008 when the company first breached the stock exchange’s marketplace rule that the bid price of a company’s common stock must remain above US$1.

After a series of extensions, Wegener received notice from Nasdaq in December 2009 that it had determined to delist the company after it failed to comply with this minimum bid requirement. However, the broadcast equipment developer was granted an appeal hearing with the Nasdaq Hearings Panel in January and this resulted in Wegener being allowed to remain listed on condition that it must be compliant with the stock exchange rules by June 7, 2010.

While Wegener had previously emphasized its desire to remain on Nasdaq, the company seemingly had a change of heart and revealed in its Q2 fiscal 2010 results in mid-April that it would not seek to regain compliance.

Troy Woodbury, President and CEO of Wegener Corporation said: “It does not appear to be in the best interest of the company and its shareholders to take extraordinary measures to retain Wegener Corporation’s Nasdaq listing. Retention of the listing would require earnings in excess of the current forecast for the third quarter of fiscal 2010, would be expensive, and would require a capital raise which is not practical at this time. As previously stated, a reverse stock split would only have been considered if the possibility of retaining the Nasdaq listing were feasible.”

In its results, the company reported Q2 revenues of US$2.4m and a net loss of approximately US$522,000, as compared to revenues of US$4.5m and net earnings of US$8,000 the same period in fiscal 2009.

Despite these declining numbers, Woodbury remains bullish on the company’s future. “I remain very optimistic about the future of Wegener Corporation and we are committed to enhancing its value for our shareholders. We will continue to trade and operate as a public company on the OTC Bulletin Board, a well-respected, established trading platform,” he said.