) recently announced its plan of voluntarily delisting its shares
from Nasdaq, following its non-compliance related to the minimum
closing bid price and stockholders' equity requirements for
sustained listing on the Nasdaq Capital Market. The company will
file the voluntary delisting form - FORM 25 - with the Securities
and Exchange Commission (SEC) on or about Aug 30 2013. The
official delisting is expected to take place 10 days after
Earlier, in Dec 2012, the company had received a notice from
Nasdaq intimating it about the failure 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 trading days.
Moreover, in Feb 2013, the company had received a follow-up
letter from Nasdaq stating that it had failed to conform to the
listing norms of maintaining a minimum of $2.5 million of
stockholders' equity. For full-year 2012, TranSwitch had
stockholders' equity of merely $1.23 million.
However, 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 had filed an
appeal of determination with a Hearing Panel. After taking into
consideration numerous factors such as its failure to comply with
the listing norms, its poor financial position and lack of
avenues for further financing, the company however later decided
to delist its shares.
However, TranSwitch's shares might be quoted in the OTCQB tier
of Over The Counter (OTC) Markets, even after being delisted from
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 communication equipments.
TranSwitch currently carries a Zacks Rank #3 (Hold).
Better-placed stocks in the same industry that are worth
Advanced Semiconductor Engineering Inc.
ARM Holdings plc
). All of them have a Zacks Rank #2 (Buy).
ARM HOLDNGS ADR (ARMH): Free Stock Analysis
ADV SEMICON ADR (ASX): Free Stock Analysis
DIODES INC (DIOD): Free Stock Analysis Report
TRANSWITCH CORP (TXCC): Free Stock Analysis
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