Dot Hill Systems Corp., a supplier of carrier-class data storage and SAN solutions, announced that it has received notification from the New York Stock Exchange that from mid-June into July of 2001, the company failed to meet a NYSE continued listing requirement that both the company's average global market capitalization and total shareholder equity must not fall below $50 million for more than 30 consecutive trading days.
"Although we are currently in compliance with the NYSE's continued listing standards and our global market capitalization is now above $50 million, we are taking steps to comply with all the NYSE procedural requirements," said Preston Romm, Dot Hill's chief financial officer.
"We believe the shortfall in Dot Hill's market cap during the specified period was primarily due to the national economic downturn that has effected the share price of many technology companies during recent quarters. Dot Hill's stockholders equity dipped below the NYSE threshold of $50 million in part because of restructuring efforts by the Company, including charges taken relating to unused and excess facilities and workforce reductions totaling approximately $4.4 million, as well as the recording of a $16.0 million charge in connection with a valuation allowance provided for deferred income tax assets," said Romm.
Under the rules of the NYSE, Dot Hill must submit a response to the NYSE's Listings and Compliance Committee describing how it will remain in compliance with the NYSE continued listing requirements. If the NYSE does not approve the response, formal delisting procedures may begin. Should that occur, the company has the opportunity to appeal the decision to a Committee of the Board of Directors of the Exchange.