DVID News ... ticker change to DVIDC ...
DVS Moves to Nasdaq SmallCap Market
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--June 18, 1999-- Digital Video Systems, Inc. (Nasdaq:DVIDC - news) announced that, effective with the open of business on June 18, 1999, DVS' securities will continue to be listed on The Nasdaq SmallCap Market via an exception from the Nasdaq's net tangible assets requirement. The Company's net tangible assets reported for the quarter ended December 31, 1998 of $3,718,000 failed by $282,000 to meet the Nasdaq's $4,000,000 net tangible assets requirement for continued listing. The Nasdaq has noted marginal compliance by the Company with its minimum $1.00 per share bid price requirement.
On June 16, 1999 The Nasdaq Listing Qualifications Panel determined to move the listing of the Company's securities to The Nasdaq SmallCap Market subject to the following conditions. On or before June 30, 1999, the Company must file Form 10-K for the fiscal year ended March 31, 1999 with the SEC and Nasdaq. The Form 10-K filing must evidence minimum net tangible assets of $2,000,000. (For purposes of determining compliance with these conditions and in accordance with Nasdaq's authority under Marketplace Rule 4300, the Company will not be entitled to the filing extensions afforded by form 12b-25). On or before August 16, 1999, the Company must file the Form 10-Q for the quarter ended June 30, 1999 with the SEC and Nasdaq. The Form 10-Q filing must evidence net tangible assets of at least $2,000,000. In addition, on or before August 16, 1999, the Company must demonstrate a minimum bid price of $1.00 per share; immediately thereafter, the Company must demonstrate a closing bid price equal to or greater than $1.00 per share for the next ten consecutive trading days. (While the Panel acknowledged that the Company is not technically deficient with respect to bid price, the Panel determined to apply additional and more stringent criteria pursuant to its authority under Marketplace Rule 4300. Additionally, depending on the facts and circumstances presented, the Panel may, in its discretion, require that the Company maintain a bid price at or above $1.00 per share for a period in excess of ten consecutive trading days before determining that the Company has complied with these conditions and demonstrated the ability to maintain long-term compliance.) On or before October 1, 1999, the Company must provide Nasdaq with an August 31, 1999 internal pro forma balance sheet demonstrating minimum net tangible assets of $2,000,000. On or before November 15, 1999, the Company must make a public filing with the SEC and Nasdaq evidencing a minimum of $5,000,000 in net tangible assets. The filing must contain a September 30, 1999 balance sheet with pro forma adjustments for any significant transactions or events occurring on or before the filing date. In order to fully comply with all the terms of this exception, the Company must be timely in all of its filings and be able to demonstrate compliance with all requirements for continued listing on The Nasdaq SmallCap Market. In the event the Company fails to comply with any of the terms of this exception, the Company's securities will be delisted from The Nasdaq Stock Market.
In the event the Company is deemed to have met the terms of the exception it shall continue to be listed on The Nasdaq SmallCap Market. The Company believes that it can meet these conditions, however there can be no assurance that it will do so. If at some future date the Company's securities should cease to be listed on The Nasdaq SmallCap Market, they may continue to be listed in the OTC-Bulletin Board. For the duration of the exception, the trading symbols of the Company securities will be changed from DVID, DVIDW and DVIDU to DVIDC, DVIWC and DVIUC, respectively.
The Company intends to continue to stress its substantial cost cutting measures including streamlining its work force, to continue to narrow its focus to its most profitable product lines, and to promptly develop its production capability in China and related financing. The Company does not expect its move to the SmallCap Market to adversely affect its business or operations.
ABOUT DVS
Digital Video Systems, Inc. is a technology company specializing in the development and application of Digital Versatile Disc (DVD) and related technologies. The Company develops and markets DVD-ROM drives, DVD intelligent loaders, DVD players, including subassemblies and components, Video on Demand Network products and CD based Video Engine products for the consumer products, commercial video and computer peripherals markets. Also under development is the DVD Video Engine product line.
Established in 1992, DVS is a publicly traded company headquartered in Mountain View, Calif., with a branch office in Taiwan and subsidiaries in Hong Kong, Bermuda, South Korea, and China. DVS is a trademark of Digital Video Systems, Inc.
This release contains forward-looking statements within the meaning of the ''safe harbor'' provisions of the private Securities Litigation Reform Act of 1995 that involve various risks and uncertainties, including, without limitation, statements with respect to DVS' strategy, proposed sales of DVS' products, markets, and the development of DVS' products. DVS' actual results may differ materially from those described in those forward-looking statements due to a number of factors, including, but not limited to, risks of competition and the enforceability of DVS' patents and other intellectual property rights, risks relating to the development and market acceptance of DVS' products, and risks related to planned rapid growth of the DVS' business and the conduct of business by DVS in foreign countries, which factors and others described in documents that DVS files from time to time with the Securities and Exchange Commission, including the Company's Form 10-QSBA dated January 18, 1999 and Form 10-QSB dated February 23, 1999. For more information on DVS' products, email to info@dvsystems.com, call 1-650-564-9699 or visit: www.dvsystems.com.
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Contact:
Digital Video Systems, Inc.
Bob Werbicki, 650/564-9699
info@dvsystems.com
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