SONICblue faces Nasdaq delisting

By Susan Rush
From The August 28, 2002 Edition Of CED Broadband Direct

SONICblue Inc.'s stock was being pummeled in early morning trading, following the news that the company has been put on notice by the Nasdaq.

The PVR technology provider has received notification that its stock has closed below the minimum $1 per share requirement for continued listing on the Nasdaq National Market. The shares are subject to delisting.

To keep its listing active, SONICblue's shares must close at or above $1 for at least 10 consecutive trading days by Nov. 18. News of the notice, however, caused the company's shares to lose nearly 16 percent of their value. As of 10:36 a.m. EDT, the shares were trading at 37 cents. The company's shares hit a 52-week low on Aug. 15, trading at 21 cents.

Earlier this month, the company ousted its Chairman and CEO Ken Potashner, apparently because Potashner was publicly lobbing allegations of below-board loans made to company executives in conjunction with SONICblue's RioPort spinoff. He was replaced by marketing executive L. Gregory Ballard.

At the time, Ballard denied Potashner was fired because of his allegations, and said the company was at a "turning point" as it moved from its graphics chip heritage and into the consumer electronics sector.