RealTime IT News

Nasdaq to K-tel: Bye-Bye

K-tel International Inc. , at one time a contender in the e-commerce wars, said it has been notified that its common stock will be delisted from the Nasdaq National Market this week. And indeed, the stock was trading at about 75 cents a share this morning on the Over-the-Counter Bulletin Board (OTCBB).

The action was a result of K-tel's failure to meet Nasdaq's continued listing requirements. The OTCBB is a controlled quotation service that offers real-time quotes, last sale prices and volume information in over-the-counter equities.

K-tel International, a vertically integrated developer, marketer, and distributor of entertainment and consumer products, reported third quarter income of 29 cents a share, a second quarter loss of 20 cents a share, and a first quarter loss of 56 cents a share, for a nine-month loss of 47 cents. The company's 1999 loss was $1.27 per share.

Revenue for the nine-months was $47 million vs. operating expenses of $54.7 million.

Ktel.com features music titles, custom CDs and digital downloads and the company also operates a European site.

K-tel was advised by Nasdaq on May 4, 2000 that it no longer meets the minimum $50 million market capitalization or total assets and total revenue requirements for continued listing. An appeal was unsuccessful.

Last August K-tel said it was outsourcing its Web site consumer order and fulfillment functions to Amazon.com in an effort to reduce its operating costs but would continue to manage sales transactions for its digital music downloads and custom CDs.