AdvanSource Biomaterials Corp. (NYSE:ASB) is moving its stock out of the New York Stock Exchange effective Nov. 16, rather than be de-listed by the exchange after falling afoul of its equity and profitability requirements.
The Wilmington, Mass.-based advanced polymer maker also posted dismal results for its fiscal 2011 second quarter, notching sales and earnings reversals compared with the same period last year.
The NYSE warned AdvanSource in August that it risked a de-listing because it fell short of its equity and profitability requirements.
At the close of the AdvanSource’s fiscal quarter ending June 30, the company reported stockholders’ equity of $5.8 million, just shy of the NYSE’s $6 million threshold. In addition, the company had net losses and losses from continuing operations in its five most recent fiscal years. In September the company submitted its plan to regain the exchange’s good graces, which apparently fell short. AdvanSource said that, rather than appeal the imminent de-listing, it would shift its stock to the Over-The-Counter Bulletin Board.
As if to add insult to injury, AdvanSource today announced losses of $710,000, or 3 cents per share, on sales of $491,000 during the three months ended Sept. 30, a top-line decline of 5.2 percent compared with the same period last year. The bottom line slid from profits of $191,000 during the second quarter of fiscal 2010, on sales of $518,000.
President and CEO Michael Adams said the company believes its license, royalty and development fee revenues “bottomed” last quarter and that it can build on two new contracts with medical device manufacturers.
AdvanSource reported cash and equivalents of $1.9 million, down 39 percent from $3.1 million as of March 31. ASB shares closed at 17 cents today, down nearly 20 percent.
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