SAN JOSE, Calif. -- Bell Microproducts, Inc. (NASDAQ:BELM) (the "Company") today announced that it has received a Nasdaq Staff Determination notice stating that the Company is not in compliance with the filing requirements for continued listing as set forth in Nasdaq Marketplace Rule 4310(c)(14) because the Staff had not received the Company's Annual Report on Form 10-K for the period ended December 31, 2006.
This notice was received in connection with the Company's ongoing, previously disclosed proceeding before The Nasdaq Stock Market regarding the continued listing of the Company's securities. The Company will file a response to the Staff's notification with the Nasdaq Listing and Hearing Review Council (the "Council"). The response that will explain that the Company's failure to file its Form 10-K for fiscal year 2006 relates to the inability to complete certified financial statements pending completion of the continued work on the previously announced restatement, its 2006 audit and the separate stock option review, and that the Company is working diligently to complete both in order to become current in its periodic filings and satisfy the continued listing requirement.
As previously disclosed, Nasdaq initially informed the Company in a Staff Determination notice dated November 14, 2006 that its securities would be delisted due to the Company's delay in filing its Quarterly Report on Form 10-Q for the period ended September 30, 2006 unless an extension was granted by Nasdaq. The Company subsequently requested and was granted a hearing before the Nasdaq Listing Qualifications Panel (the "Panel") and the Panel granted the Company's request for an extension for continued listing until May 22, 2007, unless further extended by the Council in connection with an appeal the Company has made to the Council. The Council will consider the matters giving rise to each Staff Determination notice when rendering a decision on the Company's appeal. There can be no assurance that the Council will grant the Company any further extension to satisfy the continued listing requirement set forth in Marketplace Rule 4310(c)(14).
The Company intends to file its Annual Report on Form 10-K for the period ended December 31, 2006, as well as its Quarterly Report on Form 10-Q for the period ended September 30, 2006, as soon as practicable.