Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

TranSwitch Corporation () recently announced its plan of voluntarily delisting its shares from Nasdaq, following its non-compliance related to the minimum closing bid price and stockholders’ equity requirements for sustained listing on the Nasdaq Capital Market. The company will file the voluntary delisting form – FORM 25 – with the Securities and Exchange Commission (SEC) on or about Aug 30 2013. The official delisting is expected to take place 10 days after this.

Earlier, in Dec 2012, the company had received a notice from Nasdaq intimating it about the failure to comply with the ‘Nasdaq Listing Rule 5550(a)(2)’, which requires stocks to maintain a minimum bid price of $1.00 per share on closing basis for 30 consecutive trading days.

Moreover, in Feb 2013, the company had received a follow-up letter from Nasdaq stating that it had failed to conform to the listing norms of maintaining a minimum of $2.5 million of stockholders’ equity. For full-year 2012, TranSwitch had stockholders’ equity of merely $1.23 million.

However, even during the 180-day notice period following the first letter, the company’s closing bid price failed to close at or above $1.00 for a minimum of 10 consecutive trading days. It was also unable to comply with the minimum requirement for stockholders’ equity.

In response to the delisting notice, TranSwitch had filed an appeal of determination with a Hearing Panel. After taking into consideration numerous factors such as its failure to comply with the listing norms, its poor financial position and lack of avenues for further financing, the company however later decided to delist its shares.

However, TranSwitch’s shares might be quoted in the OTCQB tier of Over The Counter (OTC) Markets, even after being delisted from Nasdaq.

TranSwitch provides innovative integrated circuit (IC) and intellectual property (IP) solutions, which help the customer and network infrastructure segment in delivering core functionality for video, voice and data communication equipments.

TranSwitch currently carries a Zacks Rank #3 (Hold). Better-placed stocks in the same industry that are worth considering include Advanced Semiconductor Engineering Inc. ((ASX - Snapshot Report)), ARM Holdings plc ((ARMH - Snapshot Report)) and Diodes Incorporated ((DIOD - Snapshot Report)). All of them have a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GRP IN DXYN 15.84 +7.90%
BOFI HLDG IN BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%