LOGIC Devices
Receives Delisting Notice from NASDAQ: Announces Filing of Appeal
SUNNYVALE, Calif.--Oct. 22, 2002--LOGIC Devices Incorporated
(NASDAQ: LOGC), today announced that it had received a NASDAQ
Staff Determination on October 17, 2002, indicating the Company
fails to comply with the minimum market value of publicly held
shares (MVPHS) of $5,000,000 and the minimum closing bid price
per share of $1.00, which are requirements for continued listing
set forth in Marketplace Rules 4450(a)(2) and 4450(a)(5), respectively,
and, therefore, its securities are subject to delisting from the
NASDAQ National Market.
The Company has requested a hearing before a Listing Qualifications
Panel to review the Staff Determination, and the Company's securities
will continue to be listed on the NASDAQ National Market pending
the results of that hearing. There can be no assurance the Panel
will grant the Company's request for continued listing. If the
Company is unsuccessful in its request for continued listing,
it will apply to transfer to its common stock listing to the NASDAQ
Small Cap Market, under that Market's continued listing standards.
There can be no assurance the Panel will grant the Company's request
for a transfer of its common stock listing.
The Company believes it has regained compliance with the minimum
MVPHS requirement of $5,000,000, and the Company's common stock
has recently traded near or above $1.00. At the hearing, the Company
will appeal the NASDAQ Staff Determination, based on these factors
and other elements of a comprehensive plan to maintain the listing
requirements. The cornerstone of this plan is the Company's previously
announced Share Repurchase Plan that was successfully implemented
earlier this month. Other factors that the Company believes warrant
the continued listing of its common stock on the National Market,
include: the Company's belief that its common stock is currently
undervalued relative to comparable companies in its industry,
on the basis of price-to-book value, price-to-sales, and price-to-operating
cash flow; and the Company's belief that the recent share price
reflects the overall market conditions rather than the strength
of the Company's finances.
The Company currently enjoys an exceptionally strong and liquid
balance sheet, with an expected fiscal year-end quick ratio of
approximately 19/1 and a current ratio of approximately 65/1.
Although the semiconductor industry is the longest and most severe
downturn of its history, the Company is continuing to generate
substantial cash flow from operations. Over the past four years,
the Company has eliminated more than 95 percent of its liabilities,
and currently has only approximately $200,000 in total liabilities,
compared to approximately $13 million in assets. In addition,
subsequent to the close of its fiscal year ended September 29,
2002 (not yet released), the Company collected a large portion
of its accounts receivable balance, and, consequently, enjoys
a substantial cash position. During the 2002 fiscal year, the
Company continued to invest over 20 percent of its net revenues
in new product development to spur on future growth.
Based on these factors, the Company decided to appeal the NASDAQ
Staff Determination, and has asked for a hearing before a Listing
Qualifications Panel, pursuant to the NASDAQ Marketplace Rule
4800 Series.
Established in 1983, LOGIC Devices is a fabless semiconductor
manufacturer providing high-performance, function-specific integrated
circuits that are utilized in smart weapons systems and in broadcast
studio, medical imaging, and digital telecommunications equipment.
"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Any statements in this
press release regarding expectations of future events are "forward-looking
statements" involving risks and uncertainties, including,
but not limited to, market acceptance risks, the effect of economic
conditions and shifts in supply and demand, the impact of competitive
products and pricing, product development, commercialization and
technological difficulties, availability of capital, and capacity
and supply constraints. Please refer to the Management Discussion
and Analysis of Financial Condition and Results of Operations
(MD&A) for a discussion of risks in the most recent LOGIC
Devices Annual Report on Form 10-K and the quarterly report under
Form 10-Q.
Editorial Contact:
LOGIC Devices Incorporated
Bill Volz
President
(408) 542-5400
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