Powerwave Receives Delisting NoticeWednesday, June 20, 2012
Cash-strapped Powerwave Technologies Inc. has received a delisting warning from the Nasdaq for failing to comply with minimum stock price requirements.
The Santa Ana-based company has until Dec. 12 to boost its common share price above $1 for 10 straight trading days to comply with the Nasdaq’s minimum bid price rule or face delisting, according to the June 15 letter.
Powerwave shares last closed above $1 on May 2, and hit a low of 69 cents on May 17. The company has seen its shares trade below the $1 threshold for more than 30 days, which prompted the letter.
The notice comes eight months after its board and stockholders approved a 1-for-5 reverse split of its outstanding shares of common stock and a reduction of authorized shares of its common stock.
The move was initiated to prop up Powerwave’s share price and stave off a possible delisting by Nasdaq.
The company makes antennas, filters and other equipment for cell phone towers.
Its devices capture and boost radio signals between cell phones and base stations inside towers.
Earlier this month it completed a $12.5 million sale of assets and inventory at its former plant in Suzhou, China, to Shenzhen Tatfook Technology Co., which in turn will provide the company with a long-term manufacturing and supply agreement.
The sale is the latest move by Powerwave to conserve cash in the last nine months.
In February it announced another round of restructuring.
In October it sold its Santa Ana headquarters in a lease-back deal for $49.1 million in one of the larger office transactions of last year.
Powerwave’s troubles first surfaced in October when sales in the third quarter plummeted 51% from a year earlier to $77.1 million.
Since then it has struggled to improve sales amid an equipment spending slowdown by Dallas-based AT&T Inc. and other North American network operators.