MPC Corp. gets non-compliance notice from stock exchange

Nampa computer maker MPC Corp. on May 14 said it received a non-compliance notice from the American Stock Exchange. The notice indicates that MPC is not in compliance with Rule 1003(a)(i) of the AMEX Company Guide in that it has stockholders' equity of less than $2 million and has sustained losses from continuing operations and net losses in two of its three most recent fiscal years, the company said in a release.

The notice requires that MPC by June 9 submit to the American Stock Exchange its plan to bring the company into compliance with listing standards by Nov. 9, 2009.

MPC said it is preparing the plan that it intends to submit to the stock exchange by the June 9, 2008 deadline.

If the company does not submit a plan, or if the plan is not accepted by AMEX, the company will be subject to delisting procedures, MPC said.

MPC stock traded at 30 cents around midday May 15 compared to a one-year range between 28 cents and $2.

The company on April 14 reported an $11.5 million loss for 2007, or 64 cents per share, on $365 million in revenue. The results include operating results for Gateway Professional Business starting last Oct. 1. For 2006, MPC posted a $58.7 million net loss on $285 million in revenue.

MPC on Oct. 1 acquired Gateway Professional Business. In that transaction, Gateway acquired MPC common stock and MPC Series B Preferred stock constituting a 19.9 percent equity interest in the company. MPC assumed warranty and other specified obligations of the Gateway Professional business, and was required to issue Gateway a promissory note worth about $6 million, subject to adjustments described in the asset purchase agreement.