11/21/2006Nestor Slashes Workforce, to be Removed from Nasdaq
Nestor Inc. slashes its workforce as debt mounts and Nasdaq Global Market delisting looms.
Rhode Island-based red light camera and speed camera vendor Nestor Inc. announced yesterday that would slash its workforce by twenty percent in a desperate bid to stay alive. The company will fire twenty-seven workers to save $1.5 million in expenses. In March, Nestor handed pink slips to nine employees.
As of yesterday, the Nasdaq listed Nestor as a "non-compliant" company failing to meet the requirements to be listed on the exchange. Last month, Nasdaq had given Nestor until November 15 to raise its stock price above $2.46 to avoid delisting. Yesterday, Nestor's shares traded at $1.30 with a market value of $26,495,300 -- about half of the required amount. On November 13, the company filed a request to downgrade the stock from the Nasdaq Global Market to the Capital Market.
Nestor has struggled financially losing $4,848,000 in the first nine months of this year and $5,494,000 in 2005. The company's total debt is nearly $66 million.