Vista, Calif. — DEI Holdings, parent to Directed Electronics and brands including Polk Audio, said it is voluntarily delisting its common stock and withdrawing the registration of its stock with the Securities Exchange Commission (SEC).
DEI stock was trading at about 38 cents late yesterday after DEI notified the Nasdaq Global Market of its decision.
DEI said it took the action, given the low price of its stock and its desire to pare down operating expenses. In addition, it said the advantages of being a public company, such as access to capital and to use stock to purchase other companies, are no longer available to the company.
It expects savings in excess of $1.5 million on an annualized basis as a result of the delisting
CEO Jim Minarik said, “Our company continues to generate strong gross margins, cash flow, and EBITDA as exhibited by our significant paydown of $49 million in debt, an 18 percent reduction, in 2008. Additionally, during these difficult economic times it is essential that we continue to avoid or eliminate costs wherever we can.”
DEI said its debt is now reduced to $218 million after paying down $124 million in fiscal 2007 and 2008.
The company remains public but is now traded on the “pink sheets” and is no longer required to file certain quarterly reports.
DEI’s trading of shares on the Nasdaq should be terminated on or about Feb. 5, and deregistration with the SEC should become effective about 90 days thereafter.
DEI Holdings also announced Edmond. Thomas resigned from its board, effective Jan. 10.