Computer Business Review

ROSS TECHNOLOGY FACES NASDAQ DE-LISTING

by CBR Staff Writer| 20 May 1998

Ross Technology, the struggling chipmaker, faces delisting from the Nasdaq exchange unless it can come up with a way to increase the value of its shares from the current abysmal level. The Austin, Texas company has been given 90 days to get the value of its shares above the $1 level. This will be some feat given they are currently being traded at $0.13, having lost 55% of their value in trading as the news sank in. Investors' loss of confidence is inevitable given that the board are close to throwing in the towel, given the difficulty are surviving when you are a 32-bit player in a 64-bit world. The ever-generous Fujitsu Ltd, which owns a 60% stake in the company and has bankrolled it in the past, has its own problems, recording an 87% fall in net profit for the year ended March. While the board said last April that it was exploring all options to avoid liquidation until it can capitalize on its Viper 64-bit Sparc technology, it admitted earlier this month that unless a buyer is found it will have no alternative than an orderly shutdown of operations (CI No 3,412). The end of this month is the final deadline. But the verdict of the market seems to be that Ross Technology is hardly worth saving.

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