For the third time, Cybex International, Medway, MA, has received a non-compliance notice from the NASDAQ Stock Market where it is traded, even as some analysts expect the company to be in the black this year.
Last year, Cybex had a net loss of $58.2 million in 2010. That loss included fourth quarter 2010 litigation charges stemming from the Barnhardt vs. Cybex International case in which Cybex was found 75 percent liable in a $66 million judgment related to a piece of its equipment. However, Zacks.com says that analysts expect the company to turn a profit in 2011.
Despite those predictions, the company’s stock has fallen below $1 for more than 30 consecutive business days, which led to a June 16 notice from NASDAQ that if the stock does not rise to $1 or more for at least 10 consecutive business days, Cybex could be delisted from NASDAQ. Cybex has 180 days (or until Dec. 13, 2011) to bring the stock’s closing bid above $1.
In January, Cybex received its first notice that its stock had fallen below $1 for 30 consecutive days and risked being delisted. The company’s stock rose above $1 on April 6 but remained there for just two business days. It jumped back to $1 on April 13 and remained above $1 until May 2, satisfying the 10-day requirement at that time. The stock price then improved to $1 on May 3-4, but it has closed below $1 since then. On Monday, it closed at 65 cents.
On April 5, NASDAQ sent a non-compliance notice to Cybex for another reason that could affect its listing. NASDAQ requires that companies traded on its floor have a minimum stockholder equity of $10 million. Cybex had negative $15 million in stockholder equity at that time. The company has until Oct. 3 to regain compliance in this matter.