K-tel International Inc.
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.
