UTStarcom Receives Nasdaq Delisting Notification
ALAMEDA, Calif., Nov. 16 /PRNewswire-FirstCall/ -- UTStarcom, Inc.
(Nasdaq: UTSI), announced today that it received a notice from the staff of
The Nasdaq Stock Market ('Nasdaq') indicating that the Company is not in
compliance with Marketplace Rule 4310(c)(14) because it has not timely filed
with the Securities and Exchange Commission (the 'SEC') its Quarterly Report
on Form 10-Q for the quarter ended September 30, 2006 (the 'Form 10-Q'). The
notice indicated that due to such noncompliance, the Company's common stock
will be delisted at the opening of business on November 27, 2006 unless the
Company requests a hearing in accordance with the Nasdaq Marketplace Rules.
The Company intends to request a hearing before a Nasdaq Listing
Qualifications Panel (the 'Panel') to review the Nasdaq staff's determination.
The hearing request will stay the delisting of the Company's common stock
pending the Panel's decision. There can be no assurance that the Panel will
grant the Company's request for continued listing.
As previously announced, the Company has delayed the filing of the Form
10-Q in order to (i) complete its voluntary review of its historical equity
award grant practices under the direction of the Nominating and Corporate
Governance Committee of the Company's Board of Directors and (ii) assess any
impact of the review on the Company's financial statements related to prior
equity grants and the Company's internal control over financial reporting.
Pursuant to the Indenture (the 'Indenture') with respect to the Company's
7/8% Convertible Subordinated Notes due 2008 (the 'Notes'), the Company is
required to file all reports and other information and documents which it is
required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange
Act of 1934, as amended, and provide a copy of such filings to the trustee for
the holders of the Notes (the 'Trustee'). Pursuant to the Indenture, a
default by the Company on this requirement becomes an 'event of default' (as
described in the Indenture) (i) if the Trustee notifies the Company of the
default or (ii) the holders of at least 25% in aggregate principal amount of
the Notes outstanding (the '25% Holders') notify the Company and the Trustee
of the default, and (iii) the Company does not cure the default within 60 days
after receipt of such notice.
asserting that if the Company fails to file the Form 10-Q on or before
Indenture. If such an event of default were to occur, the Trustee or the 25%
Holders would have the right to declare all unpaid principal and accrued
interest on the Notes then outstanding to be immediately due and payable.
About UTStarcom, Inc.
UTStarcom is a global leader in IP-based, end-to-end networking solutions
and international service and support. The company sells its broadband,
wireless, and handset solutions to operators in both emerging and established
telecommunications markets around the world. UTStarcom enables its customers
to rapidly deploy revenue-generating access services using their existing
infrastructure, while providing a migration path to cost-efficient, end-to-end
IP networks. Founded in 1991 and headquartered in Alameda, California, the
company has research and design operations in the
For more information about UTStarcom, visit the company's Web site at
The foregoing statements regarding, without limitation, the status of the
listing of the Company's securities on Nasdaq and anticipated preconditions
for the filing with the Securities and Exchange Commission of the Form 10-Q,
are forward-looking in nature, Those statements are subject to risks and
uncertainties that may cause actual results to differ materially. The Company
refers readers to the risk factors identified in its latest Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as
filed with the SEC.
SOURCE UTStarcom, Inc.