Sonic Foundry Announces Nasdaq Deficiency Notice
MADISON, WI — Sonic Foundry, Inc. (NASDAQ: SOFO) today announced that on March 10, 2008, Sonic Foundry, Inc. (the “Company”) received notice from the Nasdaq Listing Qualifications Department (the “Staff”) stating that for 30 consecutive business days the bid price for the Company’s common stock has closed below the minimum $1.00 per share requirement for continued inclusion under Marketplace Rule 4450(a)(5).
The letter, dated March 10, 2008, indicates that in accordance with Marketplace Rule 4450(e)(2), the Company will be provided 180 calendar days, or until September 8, 2008, to regain compliance with the Rule. The letter further indicates that the Company may regain compliance if at any time before September 8, 2008, the bid price of the Company’s common stock closes at $1.00 per share or above for a minimum of 10 consecutive trading days. If the Company is successful in meeting this requirement, the Staff will provide written notification that it has achieved compliance with the Rule.
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If compliance with the Rule cannot be demonstrated by September 8, 2008, the Company may consider applying to transfer its securities to The Nasdaq Capital Market provided that the Company meets The Nasdaq Capital Market initial listing criteria as set forth in Marketplace Rule 4310(c), except for the bid price requirement. If it elects to transfer its securities and meets the initial listing criteria, the Staff will notify the Company that it has been granted an additional 180 calendar day compliance period. If the Company is not eligible for an additional compliance period or if the Company elects not to transfer its securities to The Nasdaq Capital Market, the Staff will provide written notification that the Company’s securities will be delisted. At that time, the Company may appeal the Staff’s determination to delist its common stock.
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The Company intends to actively monitor the bid price for its common stock between now and September 8, 2008, and consider implementation of various options available to the Company if its common stock does not trade at a level that is likely to regain compliance.
About Sonic Foundry ®, Inc.
Sonic Foundry (NASDAQ: SOFO, www.sonicfoundry.com) is the
global leader for rich media webcasting and knowledge management, providing enterprise communication
solutions for more than 1,600 customers in education, business and government. Powered by Mediasite,
the patented webcasting platform which automates the capture, management, delivery and search of
lectures, online training and briefings, Sonic Foundry empowers people to transform the way they
communicate. Through the Mediasite platform and its Events Services group, the company helps customers
connect a dynamic, evolving world of shared knowledge and envisions a future where learners and workers
around the globe use webcasting to bridge time and distance, accelerate research and improve performance.
Product and service names mentioned herein are the trademarks of Sonic Foundry, Inc. or their
respective owners.
Certain statements contained in this news release regarding matters that are not
historical facts may be forward-looking statements. Because such forward-looking
statements include risks and uncertainties, actual results may differ materially
from those expressed in or implied by such forward-looking statements. Factors that
could cause actual results to differ materially include, but are not limited to,
uncertainties pertaining to continued market acceptance for Sonic Foundry's products,
its ability to succeed in capturing significant revenues from media services and/or
systems, the effect of new competitors in its market, integration of acquired business
and other risk factors identified from time to time in its filings with the Securities
and Exchange Commission.