Service bureau giant Apac TeleServices Inc., Deerfield, IL, said it has received a routine notice from Nasdaq that, because the company’s common stock price has been below $5 for more than 30 days, the stock exchange will review its continued listing, unless the closing bid price exceeds $5 for ten consecutive days prior to May 7, 1999.
Apac said that if its stock is taken off the Nasdaq National Market it will seek to have it listed on the Nasdaq Small-Cap Market or the American Stock Exchange.
Its stock closed Monday at 2 31/32, down 17/32.
The company also released its yearly and quarterly financial results, blaming its poor performance on special charges.
The company reported a net loss of $79.3 million on net revenue of $425 million for the 1998 fiscal year, ended January 3, 1999, compared with a net loss of $1.2 million on net revenue of $350.5 million in 1997.
For the fourth quarter the company had a net loss of $84.1 million on net revenue of $115 million, compared with a net loss of $20.3 million on net revenue of $91.4 million in the comparable period in 1997.
The results for 1998 include the revenue contributed by ITI Marketing Inc. subsequent to its acquisition on May 20, 1998. Previously reported revenue for 1997 has been reclassified to account for discontinued operations.
The results also include pre-tax special fourth-quarter charges of $9.5 million for discontinuance of an operation and of $69.7 million for impairment to goodwill and other intangible assets.
Apac said that during the fourth quarter it evaluated the carrying value of its goodwill due to the poor operating performance of its Sales Solutions business relating to changes in ITI’s client base and in the industry outlook for outbound telemarketing services. The company concluded that due to the significant decline in the growth of the outbound telemarketing industry and its own reduced growth prospects in this area, a permanent impairment of goodwill had occurred.
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