NEW YORK —Marisa Christina Inc.aid it has been warned its securities are subject to delist- ing from the Nasdaq National Market.
This story first appeared in the December 26, 2002 issue of WWD. Subscribe Today.
The New York-based appar- el manufacturer said it re- ceived a Nasdaq staff determi- nation on Dec.19 indicating that the company failed to com- ply with the minimum $10 mil- lion stockholders ’equity re- quirement for continued listing.
Marisa Christina said it has requested a hearing before a Nasdaq listing qualifications panel to review the staff de- termination.
In its Form 10-Q filed with the Securities and Exchange Commission on Nov.13,the company tated:”Nasdaq has changed its minimum $4 mil- lion net tangible assets listing standard to an equity listing standard.The change requires Nasdaq ’s national market com- panies to maintain equity of at least $10 million.This require- ment is effective for filings due by the company after Nov.1, 2002.Currently,the company i not in compliance with the standard and may not be as of Dec.31,2002.”
According to the 10-Q,tock- holders ’equity as of Sept.30 was $8.7 million.
For the third quarter ended Sept.30,improved margins and lower operating expenses al- lowed the firm to boost net in- come 8.3 percent to $1.9 million, or 26 cents a diluted share.In the year-ago corresponding pe- riod,Marisa Christina reported income of $1.7 million,or 24 cents.Despite the boost in its bottom line,net ales for the quarter slumped 16.5 percent to $10.5 million compared with $12.6 million in the comparable quarter of 2001.The decrease in sales was because of the discon- tinuation of an unprofitable label and a general downturn in the economy,the company said.