GSI Group Inc. Receives Notification from Nasdaq Regarding Minimum Bid Price Deficiency
September 21 2009 - 4:45PM
PR Newswire (US)
BEDFORD, Mass., Sept. 21 /PRNewswire-FirstCall/ -- GSI Group Inc.
(the "Company") (NASDAQ:GSIG), a supplier of precision technology
and semiconductor systems, today announced that it received a
notification from The Nasdaq Stock Market ("Nasdaq") stating that
the closing bid price of the Company's common stock was below $1.00
per share for thirty consecutive business days and that the Company
was therefore not in compliance with the minimum bid price
requirement for continued listing set forth in Listing Rule
5450(a)(1) (the "Rule"). The notice further states that the Company
will be provided 180 calendar days, or until March 15, 2010, to
regain compliance with the Rule by maintaining a closing bid price
for the Company's common stock of $1.00 per share or more for a
minimum of ten consecutive business days. This notification has no
effect on the listing of the Company's common stock at this time.
In the event that the Company does not regain compliance with the
Rule prior to the expiration of the grace period, Nasdaq will
provide written notification that the Company's securities are
subject to delisting. At such time, the Company may appeal the
delisting determination to a Nasdaq Hearing's Panel. Alternatively,
the Company could be eligible for an additional grace period if it
satisfies all of the requirements, other than the minimum bid price
requirement, for initial listing on The Nasdaq Capital Market. The
Company intends to actively monitor the bid price for its common
stock between now and March 15, 2010, and will consider available
options to resolve the deficiency and regain compliance with the
Nasdaq minimum bid price requirement. As previously disclosed, in
connection with the Company's non-compliance with certain Nasdaq
filing requirements due to the delayed filing of its periodic
reports, the Company previously requested and was granted a hearing
before the Panel. The Panel determined to grant the Company's
request for continued listing on Nasdaq 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 its delayed periodic
reports and any required restatements, on or before November 2,
2009. On August 31, 2009, the Company issued a press release
announcing, among other matters, approximate ranges of restated
revenues in its Precision Technology Segment during fiscal years
2004 through 2008. The Company continues to work diligently to
complete the preparation and filing of its delayed periodic
reports, in addition to its restated financial statements for
fiscal years 2006, 2007 and 2008. 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 Company's ability to regain
compliance with Nasdaq minimum bid price requirements, the
continued listing of the Company's shares on Nasdaq and other
statements that are not historical facts. These forward looking
statements 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 reduce operating expenses and
achieve anticipated cost reductions and savings; the Company's
ability to grow and increase profitability; the impact of bookings
on current and future sales levels; 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. For more
information contact: GSI Group Inc. Investor Relations Telephone:
781-266-5137 Email: 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). DATASOURCE: GSI Group
Inc. CONTACT: GSI Group Inc. Investor Relations, +1-781-266-5137,
Web Site: http://www.gsig.com/ Company News On-Call:
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