Bell Microproducts Delisted By Nasdaq

Nasdaq delisted the San Jose, Calif.-based distributor for not completing past-due period reports with the Securities and Exchange Commission. Nasdaq had extended the deadline until March 17, 2008, but Bell Microproducts said it would not be able to meet that date.

"The company is working dlligently to complete the process and will promptly seek relisting of its common stock once completed," the company wrote in a statement.

The company's stock, traded under the Nasdaq symbol BELM is now trading under the BELM.PK symbol.

Raymond James and Associates suspended coverage of Bell Microproducts as a result of the delisting, according to a statement. The firm had downgraded Bell Micro's shares to market perform on Jan. 29 when it anticipated the delisting. "At the time, we noted that BELM shares had held up surprisingly well in light of this issue and we expressed concern about high financial leverage, significant exposure to the mature North Amarican and European IT markets and valuation," wrote Brian Alexander, managing director of equity research, technology hardware/distribution/EMS, in an e-mail.

"Since our downgrade, BELM shares have fallen from $6.33 to $1.66 and now trade below our estimated tangible book value of $2.70 to $3.00," Alexander wrote.

According to Nasdaq, Bell Microproducts has not complied with a rule that requires that the company furnish Nasdaq with periodic reports, and with rules that require the company to hold an annual meeting of shareholders within one year after the end of each fiscal year and solicit proxies and provide proxy statements, respectively.

Bell Microproducts has not filed financial documents with the Securities and Exchange Commission since the third fiscal quarter of 2006 due to an accounting review. The company has received at least three extensions from Nasdaq.

In a statement, the distributor said it had obtained waivers from each of its major lenders for its obligations to provide audited financial statements and, where applicable, the requirement that the company remain listed on NASDAQ, through Sept. 30, 2008. "The company does not anticipate any significant impact to its operations or bank lines as a result of the delisting, and reported that there are no defaults presently existing or expected during this time," according to the statement.

Bell Microproducts shares were trading at $1.76 Wednesdaymorning, up 10 cents or 6 percent per share.