Provell Inc. has received notice from the Nasdaq National Market that it may be delisted on April 29. The company was cited for its failure to file an annual report containing audited statements, as well as failure to pay the 2002 listing fee.
Delisting is the least of the membership program provider's worries. In its most recent annual report the company said that its on-hand cash and credit would likely not cover its short-term operations. Provell is looking at a number of possible actions, including filing for Chapter 11 Bankruptcy protection.
During first quarter 2002, the company generated revenue of $36.9 million, up from $32.9 million in first quarter 2001. Its net income was 702,000, compared with a net loss of $18.1 million a year ago. The quarter ended March 30.
Provell's first quarter results reflect its efforts to cut back on acquisition marketing to less-potentially profitable members as well as to reduce customer returns and strengthen renewal rates.
These numbers may seem strong, but for all of 2001 the company took a net loss of $24.6 million, compared with net income of $27.8 million a year earlier. Its revenue was $138.1 million, up slightly from the $135.9 million it realized in 2000.
Provell offers value-added savings programs and information services to its subscribers. At the end of 2001 the company had 2.8 million members. Provell is based in Minneapolis.
