BEIJING, April 19, 2013 /PRNewswire-FirstCall/ --
Telestone Technologies Corporation (NASDAQ: TSTC) (the "Company"),
a leading supplier of local access network solutions for
communications networks in China,
today announced that on April 17,
2013, the Company received a letter (the "Letter") from
NASDAQ Stock Market LLC ("NASDAQ") indicating that it was not in
compliance with the continued listing requirements under NASDAQ
Listing Rule 5250(c)(1). The Letter, which the Company expected,
was issued in accordance with NASDAQ procedures due to the
Company's inability to file its annual report on Form 10-K for the
year ended December 31, 2012 with the Securities and Exchange
Commission by the extended April 16, 2013 deadline.
The Company disclosed on April 16,
2013, that although the Company completed the audit of the
parent company's financial records in March
2013, the filing of the 2012 annual report on Form 10-K has
been delayed because the Company will require additional time to
obtain certain necessary financial records for the year ended
December 31, 2012 from its Sichuan
Ruideng subsidiary, which are needed to complete the audit of the
Company's consolidated financial results. The Company also stated
that it is working diligently on this matter and intends to file
its annual report on Form 10-K as soon as practicable. On
April 17, the NASDAQ halted trading
in Telestone's shares.
Pursuant to NASDAQ Listing Rule 5101, NASDAQ has elected to
exercise its discretionary authority to expedite the review process
and has requested that the Company, if it chooses to do so, submit
a plan to regain compliance with NASDAQ's requirements for
continued listing no later than May 1,
2013.
If the Company does not submit a plan of compliance, or if the
plan is not accepted by NASDAQ, the Company may be subject to
delisting procedures as set forth in the NASDAQ Listing Rules.
The Company believes it can provide NASDAQ with a satisfactory
plan by May 1, 2013, to show that it
will be able to return to compliance with the Listing Rules.
About Telestone Technologies Corporation
Telestone is a leader and innovator in wireless local-access
network technologies and solutions. The company has a global
presence, with 30 sales offices throughout China and a network of international branch
offices and sales agents. For more than 10 years, Telestone has
installed radio-frequency (RF)-based 1G and 2G systems throughout
China for its leading
telecommunications companies. After intensive research on the needs
of carriers in the 3G age, Telestone developed and commercialized
its proprietary third-generation local-access network technology,
Wireless Fiber-optic Distribution System (WFDS), which provides a
scalable, multi-access local access network solution for
China's three cellular protocols.
Telestone also offers services including project design,
manufacturing, installation, maintenance and after-sales support.
The Company has approximately 1,400 employees.
Safe Harbor Statement
This release contains certain "forward-looking statements"
relating to the business of Telestone Technologies Corporation and
its subsidiary companies. Forward looking statements can be
identified by the use of forward-looking terminology such as
"believes, expects" or similar expressions. Such forward looking
statements involve known and unknown risks and uncertainties,
including all business uncertainties relating to product
development, marketing, concentration in a single customer, raw
material costs, market acceptance, future capital requirements,
competition in general and other factors that may cause actual
results to be materially different from those described herein as
anticipated, believed, estimated or expected. Certain of these
risks and uncertainties are or will be described in greater detail
in our filings with the Securities and Exchange Commission.
Telestone Technologies is under no obligation to (and expressly
disclaims any such obligation to) update or alter its
forward-looking statements whether as a result of new information,
future events or otherwise. This press release shall not constitute
an offer to sell or the solicitation of an offer to buy nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of such
state or jurisdiction.
SOURCE Telestone Technologies Corporation