4/28/2007Nestor Stock Faces Removal from Nasdaq
Desperate photo enforcement vendor Nestor, Inc. faces delisting from the Nasdaq capital market.
The Nasdaq stock exchange last week warned Nestor Inc., that the financially troubled photo enforcement vendor faces delisting from the capital market. For the past thirty trading days, Nestor stock closed below the $1 per-share mark, in violation of Nasdaq's minimum requirements. The stock closed at 81 cents on Friday. Nasdaq gave Nestor until October to comply with the rules.
Nestor continues to struggle for survival, having recently lost the valuable Davenport, Iowa contract when a judge ruled the city's photo enforcement program illegal.
"We have a history of net losses," the company stated in its latest annual report. "We expect to incur continuing losses for the foreseeable future due to significant marketing, product delivery, engineering and general and administrative expenses, and those losses could be substantial."
The company lost $7.5 million in 2006, $6.8 million in 2005 and $6.2 million in 2004. The company's accumulated debt totaled $25,690,000 last year when the company was kicked off of the Nasdaq Global Market. A lien has been placed on nearly all of the company's assets.
"We will need to generate significantly higher revenue, or reduce costs, to achieve profitability, which we may be unable to do," the annual report admitted.