VoIP technology company VocalTec Communications (Nasdaq: VOCL) announced on Thursday that today that it had received notice from The Nasdaq Stock Market that it was not in compliance with Marketplace Rule 4320(c)(2)(B), which requires the company to have a minimum $2,500,000 in stockholders' equity or $35,000,000 market value of listed securities, or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years.
According to the notice, Nasdaq is reviewing the company's eligibility for continued listing on The Nasdaq SmallCap Market.
VocalTec has been requested to provide Nasdaq by August 26, 2005 the company's plan to achieve and sustain compliance with all Nasdaq SmallCap Market listing requirements. If following review of such plan Nasdaq determines that the company's plan is inadequate, Nasdaq will provide written notification that the company's securities will be delisted.
The company may appeal against Nasdaq's decision to a Nasdaq Listing Qualifications Panel. The company said it was considering its alternatives, including quotation on the OTC Bulletin Board.
Since it was founded, VocalTec has accumulated losses of some $107 million, which reduced its shareholders' equity to $207,000 at the end of the second quarter of this year. At the end of June, in its full report for 2004, VocalTec published a going concern warning, and stated that it had failed in its attempts to raise capital. Four weeks later, the company laid off 66 workers, two-thirds of its workforce.
Published by Globes [online], Israel business news - www.globes.co.il - on August 21, 2005