BEIJING, Feb. 3, 2012 /PRNewswire-Asia/ -- SGOCO Group, Ltd. ("SGOCO," or the "Company") (Nasdaq: SGOC), a company focused on building its own brands and retail distribution network in the Chinese flat panel display market, including LCD/LED monitors, TVs, and application specific products, today announced that the Company received a letter from the Listing Qualification Staff of the NASDAQ Stock Market LLC (the "Staff"), on January 30, 2012 indicating that the Company is not in compliance with the Minimum Market Value of Publicly Held Shares (MVPHS) of $5,000,000. The Listing Rules (the "Rules") require listed securities to maintain a MVPHS of $5,000,000. MVPHS is calculated by multiplying the publicly held shares, which is the total outstanding shares less the shares held by officers, directors and beneficial owners of 10% or more of the outstanding shares, by the closing bid price. If a NASDAQ-listed company trades below the applicable MVPHS requirement for 30 consecutive business days, it will be notified of the deficiency. Based upon the Staff's review, the Company no longer meets this requirement. However, the Rules provide the Company with a compliance period of 180 calendar days in which to regain compliance with this requirement. To regain compliance with the MVPHS requirement, the Company's MVPHS must close at $5,000,000 or more for a minimum of ten consecutive business days during this compliance period. If compliance is not demonstrated for this requirement within the applicable 180 day compliance period, the Staff will notify the Company that its securities will be delisted from the NASDAQ Global Market. However, the Company may appeal the Staff's determination to delist its securities to a Hearing Panel. During any appeal process, the Company's ordinary shares would continue to trade on the NASDAQ Global Market. In the alternative the Company may be able to transfer to the NASDAQ Capital Market.
SGOCO Group (SGOC) plunged after the company reported unaudited preliminary results for the fourth quarter of the fiscal year 2013. The company, which designs, distributes and develops flat-panel displays, reported a 30.3% year-over-year decline in revenue to $44.2 million from $63.4 million. Net income plummeted 62.7% year over year to $1.2 million from $3.2 million, while earnings per share also dropped 63.2% to 7 cents from 19 cents. Gross profit fell 28.2% to $3.5 million from $4.9 million in the fourth quarter of 2012. SGOCO said in its statement that the sharp revenue decline comes from the "significant growth" the company had in the fourth quarter of 2012; the 2013 quarter, on the other hand, was "normal."