Delayed Form 10-Q for March 2005 results in expected noncompliance notice
Datastream receives extension from Nasdaq through July 29, 2005
GREENVILLE, S.C., May 20 /PRNewswire-FirstCall/ -- Datastream Systems,
Inc. (Nasdaq: DSTME) announced today that on May 18, 2005 it received a
notification of noncompliance from the Listing Qualifications Department at
The Nasdaq Stock Market, Inc. ("Nasdaq"). The Company expected to receive the
notification because of the delay in filing its Form 10-Q for the quarter
ended March 31, 2005 with the Securities and Exchange Commission (the
"Commission"). The notification states that the Company is in noncompliance
with Marketplace Rule 4310(c)(14) and its securities are, therefore, subject
to delisting from The Nasdaq National Market. Marketplace Rule 4310(c)(14)
requires that a listed company file with Nasdaq all reports and other
documents filed or required to be filed with the Commission.
Datastream also received a notification from the Nasdaq Listing
Qualifications Panel (the "Panel") on May 18, 2005 informing the Company that
the Panel has granted the Company's request to extend the filing deadline for
its Form 10-K for the fiscal year ended December 31, 2004 and Form 10-Q for
the quarter ended March 31, 2005 to July 29, 2005. In addition, the Panel
extended the filing deadline for the Company's Form 10-Q for the quarter ended
June 30, 2005 to August 26, 2005.
The Company has completed the previously announced Audit Committee
investigation, review of revenue recognition from all international resellers
and restatement of its financial statements. Datastream is now in the process
of making up for the resulting delay of its 2004 Form 10-K and management's
evaluation of internal control over financial reporting and related auditor
attestation, as well as its first quarter 2005 Form 10-Q.
About Datastream Systems, Inc.
Datastream Systems, Inc. (Nasdaq: DSTME - News) provides Asset Performance
Management software and services to enterprises worldwide, including more than
65 percent of the Fortune 500. Datastream's solutions combine world-class
asset management functionality with advanced analytics to deliver a powerful
platform for optimizing enterprise asset performance.
By using Datastream's solutions, customers can maintain and manage capital
assets -- such as manufacturing equipment, vehicle fleets and buildings -- and
create analyses and forecasts so they can take action to improve future
performance. Datastream's flagship product, Datastream 7i(TM), delivers a
complete Asset Performance Management infrastructure by combining an Internet
architecture with broad enterprise asset management functionality, integrated
procurement, advanced analytics and multi-site capability.
Datastream was founded in 1986 and has customers in more than 140
countries. For more information, visit http://www.datastream.net.
This press release contains forward-looking statements that involve a
number of risks and uncertainties. Factors that could cause actual results to
differ materially include, but are not limited to: the Nasdaq Listing and
Hearing Review Council (the "Council") has elected to review the Panel's March
24, 2005 decision to grant the Company an additional filing extension, and the
Council could reverse the Panel's decision; even though extensions have been
granted by the Panel for filing the Company's Form 10-K for the year ended
December 31, 2004 and Forms 10-Q for the quarters ended March 31 and June 30,
2005, the Company may not be able to file such documents before the extended
deadlines; the Company may not be able to comply with the other conditions for
continued listing issued by the Nasdaq Hearings Panel; if the Council reverses
the Panel's March 24, 2005 decision or if the Company cannot comply with the
conditions for continued listing, the Company's common stock may be delisted
from the Nasdaq Stock Market, which could adversely affect the liquidity of
the trading market for its common stock, and, therefore, could adversely
affect the trading price of the Company's common stock; with respect to the
Company's review of its internal controls, the Company expects that it will
have material weaknesses at December 31, 2004 related to the control
deficiencies identified during the restatement period and the Company cannot
be certain that it or its independent registered public accounting firm will
be able to assess the Company's other internal controls were otherwise working
effectively at December 31, 2004; increasing competition in the markets in
which the Company competes; the stability of the Company's strategic
relationships with third party suppliers and technologies; the ability of the
Company to: sell larger and more complex software solutions, successfully
transition to the development of further Internet-based products, successfully
manage its international operations, enhance its current products and develop
new products and services that address technological and market developments;
and other risk factors listed from time to time in Datastream's SEC reports,
including, but not limited to the "Risk Factors" contained in Datastream's
Annual Report on Form 10-K for the fiscal year ended December 31, 2003, as
amended, and in Datastream's Quarterly Report on Form 10-Q for the quarter
ended September 30, 2004. Datastream does not have, and expressly disclaims,
any obligation to release publicly any updates or any changes in the Company's
expectations or any changes in events, conditions or circumstances on which
any forward-looking statement is based.
SOURCE Datastream Systems, Inc.
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Related links:
http://www.datastream.net
CONTACT:
Investor Relations and Media Inquiries: Andy
Murphy of SparkSource, Inc., +1-781-274-6061,
amurphy@sparksource.com
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