ModusLink Global Solutions (TM), Inc. (NASDAQ:MLNK) today confirmed that it received on June 13, 2012, the anticipated notification from the Listing Qualifications Department of The NASDAQ Stock Market LLC (“NASDAQ”) of ModusLink’s noncompliance with NASDAQ Listing Rule 5250(c)(1) due to the Company’s previously announced delay in filing its Form 10-Q for the period ended April 30, 2012.
As previously disclosed on June 11, 2012, the Company expected that NASDAQ would provide this notice. The NASDAQ notification letter indicates that the Company has 60 days to submit a plan to regain compliance. The Company intends to submit a plan to NASDAQ in accordance with the notification.
If NASDAQ accepts the plan, it can grant an exception of up to 180 calendar days from the filing’s due date, or until December 10, 2012, to regain compliance. If NASDAQ does not accept the Company’s plan, NASDAQ will provide notice that the Company's common stock will be subject to delisting. ModusLink has the right to appeal a determination to delist its common stock, and the common stock would remain listed on the NASDAQ Global Market until the completion of the appeal process.
About ModusLink Global SolutionsModusLink Global Solutions, Inc. designs and executes global supply chain and e-Business strategies that drive revenue growth, reduce cost and enhance the customer brand experience for the world’s leading companies. Our factory supply, warehousing, postponement, fulfillment, returns management, value recovery, e-commerce, customer care and digital rights management solutions are delivered across a footprint of 30 Solution Centers in 15 countries. By leveraging our more than 30 years of experience in a variety of vertical markets and industries, ModusLink clients can react quickly to shifting market dynamics that impact the end-to-end product lifecycle. For more information about ModusLink’s reliable, flexible and sustainable solutions, visit www.moduslink.com or www.valueunchained.com, the blog for supply chain professionals. Safe Harbor This news release contains forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainty. All statements other than statements of historical fact, including without limitation, those with respect to the Company’s goals, plans, expectations and strategies set forth herein are forward looking statements. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward looking statements: unanticipated issues relating to the Company’s continued listing on NASDAQ; unanticipated accounting issues or audit issues regarding the financial data for the periods to be restated or adjusted; inability of the Company or its independent registered public accounting firm to confirm relevant information or data; unanticipated issues that prevent or delay the Company’s independent registered public accounting firm from concluding the audit or that require additional efforts, procedures or review; the Company’s inability to design or improve internal controls to address identified issues; the impact upon operations of legal compliance matters or internal controls review, improvement and remediation, including the detection of wrongdoing, improper activities or circumvention of internal controls; difficulties in controlling expenses, including costs of legal compliance matters or internal controls review, improvement and remediation; the Company’s success, including its ability to meet its revenue, operating income and cost savings targets, maintain and improve its cash position, expand its operations and revenue, lower its costs, improve its gross margins, reach and sustain profitability, reach its long-term objectives and operate optimally, depends on its ability to execute on its business strategy, including the announced investment and costs savings plan and the continued and increased demand for and market acceptance of its services; global economic conditions, especially in the technology sector are uncertain and subject to volatility; demand for our clients’ products may decline or may not achieve the levels anticipated by our clients; the Company’s management may face strain on managerial and operational resources as they try to oversee the expanded operations; the Company may not realize the expected benefits of its restructuring and cost cutting actions; the Company may not be able to expand its operations in accordance with its business strategy; the Company’s cash balances may not be sufficient to allow the Company to meet all of its business and investment goals; the Company may experience difficulties integrating technologies, operations and personnel in accordance with its business strategy; the Company derives a significant portion of its revenue from a small number of customers and the loss of any of those customers could significantly damage the Company’s financial condition and results of operations; the Company frequently sells to its supply chain management clients on a purchase order basis rather than pursuant to contracts with minimum purchase requirements, and therefore its sales and the amount of projected revenue that is actually realized are subject to demand variability; the Company’s pipeline of sales opportunities represents potential sales transactions and estimated annual revenue therefrom and there can be no assurance that such sales efforts will be successful or that the potential revenue will be realized; risks inherent with conducting international operations; tax rate expectations are based on current tax law and current expected income and may be affected by the jurisdictions in which profits are determined to be earned and taxed, changes in estimates of credits, benefits and deductions, the resolution of issues arising from tax audits with various tax authorities, including payment of interest and penalties and the ability to realize deferred tax assets; the mergers and acquisitions and IPO markets are inherently unpredictable and liquidity events for companies in the Company’s venture capital portfolio may not occur; increased competition and technological changes in the markets in which the Company competes; and the potential outcome and impact of the Company’s ongoing review of strategic alternatives. There can be no assurance that the Company’s review of strategic alternatives will lead to any transaction, result in increased value to its stockholders or the realization of long-term value by stockholders. For a detailed discussion of cautionary statements that may affect the Company’s future results of operations and financial results, please refer to the Company’s filings with the Securities and Exchange Commission, including the Company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Forward-looking statements represent management’s current expectations and are inherently uncertain. We do not undertake any obligation to update our forward-looking statements except as required by law.
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