Bell Micro stock to be delisted from NASDAQ

What now?

Bell Microproducts’ stock will be suspended from trading on NASDAQ as of the opening of business today. Its common stock will be quoted on the Pink Sheet Electronic Quotation Service under the ticker symbol BELM.PK.

The value-added distributor had been given until 17^th March by NASDAQ to file certain reports with the Securities and Exchange Commission (SEC) and thus comply with NASDAQ's listing requirements. Bell Micro was unable to comply by the deadline and will therefore be delisted.

On 13^th February 2008, Bell Micro announced it had received waivers under all of its major lending agreements to the extent that they had all agreed to waive the company's obligation to provide audited financial statements through September 30, 2008, and, where applicable, the requirement that the Company remain listed on NASDAQ.

In today’s press release, Bell Micro said: ‘The Company does not anticipate any significant impact to its operations or bank lines as a result of the delisting, and reported that there are no defaults presently existing or expected during this time.’

On 25^th January 2008, Bell Micro said in a statement: ‘The company, together with outside accounting consultants, is working diligently to review certain historical accounting practices regarding reserves, accruals and estimates and determine if adjustments are required, and if so, the amounts thereof.’ In the same statement it warned that it may not be able to meet the NASDAQ’s 17^th March deadline.

On 9^th January 2008 Bell Micro issued three statements. One revealed that it was: 'not in compliance with the requirements for continued listing pursuant to NASDAQ Marketplace Rules 4350(e) and 4350(g) because the Company did not hold an annual meeting of its shareholders within one year after the end of its 2006 fiscal year nor did the Company solicit proxies and provide proxy statements.'

Another statement said: 'As previously announced, the company has completed its independent investigation of historical stock option practices over the period January 1, 1996 through December 31, 2006, and that available evidence does not adequately support the Company's use of some stock option grant dates for financial accounting purposes.'

It also listed some additional accounting errors related to its historical financial statements and said that further adjustments to those financial statements would be required to correct the errors.

In its third 9^th January 2008 statement, Bell Micro revealed that: ‘Revenue for the full year was approximately $4.05 billion, an increase of 19% over 2006.’

At close of business yesterday, the price of Bell Micro shares (BELM) on NASDAQ was $1.66, giving it a market capitalisation of $50.48 million. The stock was worth around $6 at the start of the year and topped $30 in late 2000.