Tuesday, September 30, 2008

Nasdaq serves notice on NEI

By Mass High Tech Staff

NEI Inc. reports that it was notified by The Nasdaq Stock Market that during the preceding 30 consecutive trading days the closing bid price of NEI’s common stock has been below the $1 minimum bid per share that’s required by Nasdaq.

Canton-based NEI (Nasdaq: NENG) will be given 180 days, or until March 30, 2009, to regain compliance with the minimum bid price requirement, company officials said.

The Nasdaq notice has no immediate effect on the listing of NEI’s common stock. However, it may require that NEI maintain a bid price of more than $1 for more than 10 business days, but generally no more than 20 business days, before determining that the issuer has demonstrated the ability to maintain long-term compliance, officials said.

If NEI is unsuccessful in meeting the minimum bid requirement during the initial 180-day period, Nasdaq will provide notice to NEI that its common stock will be delisted. NEI may appeal the delisting or apply to transfer its common stock to the Nasdaq Capital Market from the Global Market if NEI satisfies all criteria for initial listing.

NEI, which was founded in 1997 as Network Engines Inc., develops server-appliance products and services. It changed its name to NEI in March, following the $40 million acquisition of Texas-based Alliance Systems Inc.

During 2007, NEI posted a $2.5 million profit on revenue of $119.6 million.