Semiconductor solutions provider
) recently announced that it has received a delisting notice from
'The Nasdaq Stock Market LLC' that threaten to suspend its shares
from trading from Jun 17, 2013. Following the announcement, the
company's share plunged 6.55% to close at $0.4335.
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Earlier, in Dec 2012, the company had received a letter from
Nasdaq for failing to comply with the 'Nasdaq Listing Rule
5550(a)(2)', which requires stocks to maintain a minimum bid
price of $1.00 per share on closing basis for 30 consecutive
Also, in Feb 2013, the company had received a follow-up letter
from Nasdaq stating that it has failed to comply with the listing
norms which requires listed companies to maintain a minimum of
$2.5 million of stockholders' equity. For full year 2012,
TranSwitch had a stockholders' equity of $1.23 million.
Thereafter, even during the 180-day notice period following the
first letter, the company's closing bid price failed to close at
or above $1.00 for a minimum of 10 consecutive trading days. It
was also unable to comply with the minimum requirement for
In response to the delisting notice, TranSwitch has decided to
file an appeal of determination with a Hearing Panel, and intends
to submit its plan to regain compliance along with a request for
some additional time.
However, it remains to be seen whether the revival plan by
TranSwitch is acceptable to the Panel for granting permission for
continued listing or whether it decides to suspend trading.
TranSwitch provides Innovative integrated circuit (IC) and
intellectual property (IP) solutions, which help the customer and
network infrastructure segment in delivering core functionality
for video, voice and data communications equipment.
TranSwitch currently carries a Zacks Rank #3 (Hold). Some other
stocks in the same sector include I
ntegrated Device Technology, Inc
OmniVision Technologies, Inc
), each carrying a Zacks Rank #1 (Strong Buy) and
) carrying a Zacks Rank #2 (Buy).