The call-center software provider Versatility Inc., under siege for months amid concerns for its financial health, was delisted from the Nasdaq market last week.
The Fairfax, Va., company, which counts Mellon Bank Corp. and Sanwa Bank of California among its customers, was forced to restate its earnings for inappropriately recording certain revenues in the fiscal year that ended April 30, 1997.
When Versatility announced the restatement in March, Nasdaq imposed a requirement that it maintain minimum net assets of $10 million-2.5 times more than the normal level of assets required for listing, said Ken Nelson, chief financial officer at Versatility.
Versatility missed its June 30 deadline for hitting that asset level, and its request for a 45-day extension was denied last week.
Revenue for fiscal 1997 was restated down, to $18.3 million from $27.4 million. That resulted in a net loss of $7.9 million, or $1.26 a share, instead of the previously reported profit of $1.9 million, or 12 cents.
Versatility, which gets 73% of its revenue from eight customers, expects the lower revenues and earnings to continue. Customers and prospects have said they will defer new orders, according to a document recently filed with the SEC.
The company went public in December 1996, issuing 2.2 million shares at $15 apiece. In over-the-counter trading the stock closed at $1.37 on Friday.