GSI Group Reports Favorable Decision by Nasdaq
July 22 2009 - 9:00AM
PR Newswire (US)
BEDFORD, Mass., July 22 /PRNewswire-FirstCall/ -- GSI Group Inc.
(Nasdaq: GSIG, the "Company"), a supplier of precision technology
and semiconductor systems, today announced that the Nasdaq Hearings
Panel (the "Panel") has determined to grant the Company's request
for continued listing on The Nasdaq Stock Market ("Nasdaq"). The
Panel's determination is conditioned on the Company (i) reporting
to the Panel on or before August 31, 2009 the status of its public
disclosure about the range of adjustments the Company expects to
make to revenue transactions in its Precision Technology Segment
for 2004 through 2008 and (ii) filing on or before November 2, 2009
its delayed periodic reports and any required restatements. Should
the Company be unable to meet the exception requirements, the Panel
will issue a final determination to delist the Company's shares. As
previously announced, on May 6, 2009, the Company received a staff
determination notice from Nasdaq, indicating that the Company's
common stock is subject to delisting since the Company is not in
compliance with Listing Rule 5250(c) due to the delayed filing of
the Company's Quarterly Report on Form 10-Q for the quarterly
period ended September 26, 2008 and Annual Report on Form 10-K for
the fiscal year ended December 31, 2008. Subsequently, on May 14,
2009, the Company received an additional staff determination notice
from Nasdaq, due to the delayed filing of the Company's Quarterly
Report on Form 10-Q for the quarterly period ended April 3, 2009.
The Company previously requested, and was granted, a hearing before
the Panel to appeal the staff determination and request additional
time to file its periodic reports. The Panel hearing was held on
June 11, 2009. As previously disclosed, the Company's Audit
Committee has concluded its review of sales transactions in the
Company's Semiconductor Systems Segment, along with other sales
transactions that contain arrangements with multiple deliverables,
for fiscal years 2006, 2007 and 2008, and the Company is currently
reviewing the timing of revenue recognized in connection with
multiple element arrangements in its Precision Technology Segment
from 2004 through 2008 to determine if adjustments need to be made
to those periods. The Company is working diligently to complete the
preparation and filing of its delayed periodic reports, in addition
to restated financial statements for fiscal years 2006, 2007 and
2008. About GSI Group Inc. GSI Group Inc. supplies precision
technology to the global medical, electronics, and industrial
markets and semiconductor systems. GSI Group Inc.'s common shares
are listed on Nasdaq (GSIG). Safe Harbor and Forward Looking
Information Certain statements in this release are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995 and are based on current expectations and
assumptions that are subject to risks and uncertainties. All
statements contained in this news release that do not relate to
matters of historical fact should be considered forward-looking
statements, and are generally identified by words such as "expect,"
"intend," "anticipate," "estimate," "plan," and other similar
expressions. These forward-looking statements include, but are not
limited to, statements related to: the prior review of the
Semiconductor Systems Segment by the Company's Audit Committee and
the results of that review; completion of the Company's review of
the Precision Technology Segment; completion of the restatement of
the Company's financial results for fiscal years 2006, 2007 and
2008; completion and filing of the Company's delayed periodic
reports; the delisting proceedings with Nasdaq; and other
statements that are not historical facts. These forward looking
statements contain estimates and involve a number of risks,
uncertainties, assumptions and other factors that could affect
future results and cause actual results and events to differ
materially from historical and expected results and those expressed
or implied in the forward looking statements, including, but not
limited to, the following: the highly unpredictable nature of the
semiconductor and electronics materials processing industry;
deteriorating market conditions; the effect of the current
financial and economic crises on credit markets, financial
institutions, customers, suppliers and consumers; the Company's
ability to manage its significant indebtedness in light of current
economic and business conditions; the potential results of any
restructuring of outstanding indebtedness including the issuance of
a substantial amount of equity securities in exchange for a portion
of such indebtedness and the dilutive impact of such issuance, the
renegotiation of the terms of indebtedness that remains outstanding
or the incurrence of additional material obligations as part of any
such restructuring; the Company's ability to reduce operating
expenses and achieve anticipated cost reductions and savings; the
Company's ability to grow and increase profitability; future
liquidity and valuation of auction rate securities; changes in
accounting standards; failures of the Company to properly identify
the timing of when revenue should be recognized; the Company's
ability to quickly increase manufacturing capacity and promptly
respond to fluctuating product demands; the Company's need to
invest in research and development; the Company's ability to
develop and deliver new competitive technology and enhancements and
customer acceptance thereof; failure to identify and manage
weaknesses in internal controls; the effects of competition; risks
related to consolidation of operations and the integration of
operations and employees of acquired businesses, including Excel;
the Company's inability to recognize synergies of acquired
businesses, including Excel; the completion and outcome of the
Company's financial restatements and review of financial results;
the Company's ability to complete and file its delayed periodic
reports with the SEC on a timely basis; the Company's ability to
meet the requirements for continued listing of the Company's shares
on Nasdaq; and the risks of existing and future litigation and
governmental or other regulatory inquiry or proceedings arising out
of or related to the Company's revenue recognition practices. Other
important risk factors that could affect the outcome of the events
set forth in these statements and that could affect the Company's
operating results and financial condition are discussed in the
Company's Annual Report on Form 10-K for the year ended December
31, 2007 and in the Company's subsequent filings with the SEC made
prior to or after the date hereof. Such statements are based on the
Company's management's beliefs and assumptions and on information
currently available to the Company's management. The Company
disclaims any obligation to update any forward-looking statements
as a result of developments occurring after the date of this
document. The unaudited financial information presented in this
press release is subject to change based on, among other factors,
the completion of the work attendant to the restatement of the
Company's financial statements and the completion of its delayed
periodic reports herein discussed. The information included in this
press release is not intended as and should not be viewed as a
substitute for full financial statements. For more information
contact: GSI Group Inc. Investor Relations Telephone: 781-266-5137
Email: DATASOURCE: GSI Group Inc. CONTACT: GSI Group Inc. Investor
Relations, +1-781-266-5137, Web Site: http://www.gsig.com/ Company
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