Tuesday, March 3, 2009

NaviSite cited for Nasdaq noncompliance

By Mass High Tech staff

Enterprise applications hosting and services company NaviSite Inc. has been notified by the Nasdaq Listing Qualifications Staff that its common stock will be delisted unless it seeks a hearing with Nasdaq. Company officials said they expect today to request a hearing.

The Andover-based company has said that it failed to maintain at least $2.5 million in shareholder equity, $35 million in listed securities or $500,000 in net income from continuing operations for recent completed fiscal years. A request for a hearing would stay any action until an outcome from the hearing has been determined.

On Nov. 6, 2008, Navisite (Nasdaq: NAVI) received a non-compliance notice from the Nasdaq Listing Qualification Staff. A subsequent compliance extension until February 19 resulted with the company’s continued non-compliance.

Founded in 1996, NaviSite develops application solutions and managed services.

As of November 2008, CEO Arthur Becker cited strong “organic growth” of hosting contracts in the fourth quarter of 2008. In a statement, he said that the despite the slowing economic climate, NaviSite attracted $1 million of new hosting recurring bookings in Q4.

In April, NaviSite reported that it had signed an agreement with chip manufacturer Intel Corp., under which Intel would offer NaviSite’s suite of managed services through Intel’s reseller community.