Easylink Services (NASDAQ:EASYE)
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From Jun 2019 to Jun 2024
EasyLink Services Corporation (NASDAQ: EASYE), a leading
global provider of services that power the exchange of information
between enterprises, their trading communities and their customers,
today announced that it has received notices of non-compliance with
Nasdaq Stock Market continued listing requirements.
On August 23, 2005, the Company received notice from The NASDAQ
Stock Market, Inc. Listing Qualifications Staff that the Company has
failed to comply with the filing requirement for continued listing set
forth in Nasdaq Marketplace Rule 4310(c)(14) due to the Company's
failure to file its quarterly report on Form 10-Q for the three months
ended June 30, 2005 on a timely basis and that its common stock is
therefore subject to potential delisting from The Nasdaq National
Market. The Company has requested a hearing before a NASDAQ Listing
Qualifications Panel and at the hearing will request a waiver of the
compliance failure until the Company files its Form 10-Q for the three
months ended June 30, 2005. The Company previously announced that it
would not be able to file its Form 10-Q for the quarter ended June 30,
2005 until its recently appointed independent public accounting firm
completes its review of the Company's financial statements for the
quarter and potential adjustments relating to certain prior period
expense accruals and foreign tax liabilities have been resolved. The
Company's appeal to the Panel will automatically stay the delisting of
the Company's common stock pending the Panel's review and
determination. The Company's stock will remain listed on The NASDAQ
National Market under the trading symbol "EASYE" during the pendency
of the Panel's review and determination.
On August 23, 2005, the Company also received notice from The
NASDAQ Stock Market, Inc. Listing Qualifications Staff that for 30
consecutive trading days the bid price of its common stock closed
below the minimum $1.00 per share required for continued inclusion
under Nasdaq Marketplace Rule 4450(a)(5) (the "Minimum Bid Price
Rule"). This notification from Nasdaq has no effect on the listing of
the Company's common stock on the Nasdaq National Market at this time,
and the Company has not yet determined to take any particular action
in response to this notification.
The letter from Nasdaq indicates that, in accordance with Nasdaq
Marketplace Rule 4450(e)(2), the Company has until February 21, 2006
(180 calendar days from the date of the letter) to regain compliance
with the Minimum Bid Price Rule. The Company may regain compliance
with the Minimum Bid Price Rule if, at any time before February 21,
2006, the bid price of its common stock closes at $1.00 per share or
more for a minimum of ten consecutive trading days. The Nasdaq staff
may, in its discretion, require the Company to maintain a bid price of
at least $1.00 per share for a period in excess of ten consecutive
business days (but generally no more than 20 consecutive business
days) before determining that the Company has demonstrated the ability
to maintain long-term compliance. The letter states that, if
compliance with the minimum Bid Price Rule cannot be demonstrated by
February 21, 2006, the Nasdaq staff will provide written notification
that the Company's common stock will be delisted, and at that time the
Company may appeal the staff's determination to a Listing
Qualifications Panel. The letter also indicates that, alternatively,
the Company may apply to transfer its common stock to The Nasdaq
SmallCap Market if the Company satisfies the requirements for initial
inclusion on the Nasdaq SmallCap Market, other than the Minimum Bid
Price Rule, and that if the application is approved, the Company will
be afforded the remainder of the Nasdaq SmallCap Market's additional
180-day compliance period to regain compliance with the Minimum Bid
Price Rule while on the Nasdaq SmallCap Market.
This press release is being issued pursuant to the requirements of
Nasdaq Marketplace Rule 4815(b).
About EasyLink Services Corporation
EasyLink Services Corporation (NASDAQ: EASYE), headquartered in
Piscataway, New Jersey, is a leading global provider of services that
power the exchange of information between enterprises, their trading
communities, and their customers. EasyLink's networks facilitate
transactions that are integral to the movement of money, materials,
products, and people in the global economy, such as insurance claims,
trade and travel confirmations, purchase orders, invoices, shipping
notices and funds transfers, among many others. EasyLink helps
companies become more competitive by providing the most secure,
efficient, reliable, and flexible means of conducting business
electronically. For more information, please visit www.EasyLink.com.
This news release may contain statements of a forward-looking
nature relating to future events or financial results of EasyLink
Services Corporation. Investors are cautioned that such statements are
only predictions and that actual events or results may differ
materially. In evaluating such statements, investors should
specifically consider the various factors that could cause actual
events or results to differ materially from those indicated from such
forward-looking statements. These include: the risk of being delisted
from NASDAQ (including the risk that the Nasdaq Listing Qualifications
Panel will determine not to grant the Company's request for continued
listing, the risk that the Company will not be able to regain
compliance with the Minimum Bid Price Rule by February 21, 2006, that
it will not be eligible to transfer to The Nasdaq SmallCap Market or
that, if it is able to transfer to The Nasdaq SmallCap Market, that it
will not be able to regain compliance with the Minimum Bid Price Rule
within any additional compliance period while on the Nasdaq SmallCap
Market). the Company's 2nd quarter 2005 results are subject to review
by Grant Thornton LLP and any proposed adjustments to certain prior
period expense accruals and foreign tax liabilities are subject to the
review and approval of the Company's prior independent accountants;
the need to raise additional capital; the ability to service our
remaining indebtedness; the ability to continue as a going concern
being dependent upon the ability to generate sufficient cash flow to
meet our obligations on a timely basis, to obtain additional financing
or refinancing as may be required, and to achieve and maintain
profitable operations; significant leverage; the ability to attract
additional customers or to expand services sold to existing customers;
the ability to successfully implement our business strategy;
significant competition; and the risks inherent in integrating the
EasyLink business. These and other risks and uncertainties are
described in more detail in the Company's filings with the Securities
and Exchange Commission.